Consolidated Financial Summary (Japanese GAAP)
for the Fiscal Year Ended March 31, 2017
May 15, 2017
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Shigeru Ishii, President and Representative Director
Inquiries:
Yasuo Hasegawa, General Manager—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)
Company name:
1. Consolidated financial results for the fiscal year ended March 31, 2017
(1) Operating results
Ordinary Revenues
Millions of yen
For the year ended
March 31, 2017
For the year ended
March 31, 2016
Profit Attributable to Owners of
the Parent
Ordinary Profit
% change
Millions of yen
% change
Millions of yen
% change
1,381,667
1.4
66,326
(6.7)
41,621
(4.0)
1,362,044
0.7
71,103
(21.1)
43,355
(20.3)
Note: Comprehensive Income:
For the year ended March 31, 2017: ¥21,433 million: (69.9) %
For the year ended March 31, 2016: ¥71,105 million: (21.6) %
Net Income per
Share
For the year ended
March 31, 2017
For the year ended
March 31, 2016
Net Income per
Share
(Fully Diluted)
Net Income on
Shareholders’
Equity
Ordinary Profit on
Total Assets
Yen
Yen
95.69
95.68
6.9
0.6
4.8
99.67
—
7.5
0.7
5.2
Notes: Equity in earnings (losses) of affiliates:
%
%
Ordinary Profit on
Ordinary Revenues
%
For the year ended March 31, 2017: ¥(3,551) million
For the year ended March 31, 2016: ¥(718) million
(2) Financial conditions
Total Assets
Total Net Assets
Net Asset Ratio
Net Assets per Share
Millions of yen
Millions of yen
%
Yen
As of March 31, 2017
11,471,845
601,139
5.2
1,378.63
As of March 31, 2016
10,352,114
604,377
5.8
1,386.32
Notes: Net Assets Attributable to Shareholders:
As of March 31, 2017: ¥599,630 million
As of March 31, 2016: ¥603,048 million
(3) Cash flows
For the year ended
March 31, 2017
For the year ended
March 31, 2016
Cash Flows from
Operating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Millions of yen
Millions of yen
Millions of yen
Cash and Cash
Equivalents at end of
the period
Millions of yen
692,445
(624,749)
(34,057)
268,381
602,475
(558,825)
(17,437)
233,620
2. Dividends
Dividend per Share
Record date
For the year ended
March 31, 2016
For the year ended
March 31, 2017
For the year ending
March 31, 2018
(forecast)
1st quarter
2nd quarter
3rd quarter
Year-end
Annual Total
Yen
Yen
Yen
Yen
Yen
Annual
Dividend
Amount
Dividend
Payout
Ratio
Dividend on
Net Assets
Millions of yen
%
%
—
0.00
—
55.00
55.00
23,924
55.2
4.2
—
0.00
—
55.00
55.00
23,922
57.5
4.0
—
0.00
—
55.00
55.00
57.0
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2018
(Percentage figures represent changes from the results of the previous fiscal year.)
Ordinary Revenues
For the year ending
March 31, 2018
Profit Attributable to
Owners of the Parent
Ordinary Profit
Millions of yen
% change
Millions of yen
% change
Millions of yen
% change
1,430,000
3.5
67,000
1.0
42,000
0.9
Net Income per
Share
Yen
96.56
4. Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scope of
consolidation): None
(2) Changes in accounting policies, accounting estimates and restatements of the Consolidated Financial Statements
(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: Yes
(b) Changes in accounting policies due to other reasons: None
(c) Changes in accounting estimates: None
(d) Restatements of the Consolidated Financial Statements: None
Notes: For details, please refer to the section entitled “1)Changes in accounting policies, accounting estimates and restatements of the Consolidated
Financial Statements” under “5. Notes to the Consolidated Financial Statements” of Supplemental Materials on page 17.
(3) Number of shares outstanding (common stock)
(a) Number of shares outstanding (including treasury shares)
As of March 31, 2017:
As of March 31, 2016:
(b) Number of treasury shares
As of March 31, 2017:
As of March 31, 2016:
(c) Weighted-average number of shares
For the year ended March 31, 2017:
For the year ended March 31, 2016:
Audit of Financial Statements
This earnings report is exempt from audit procedure.
435,000,000 shares
435,000,000 shares
52,975 shares
75 shares
434,978,040 shares
434,999,933 shares
Content of Supplemental Materials
I.
Qualitative Information and Financial Statements
1.
Qualitative Information on Consolidated Operating Performance ……………………………
2
2.
Qualitative Information on Consolidated Financial Position …………………………………
4
3.
Basic Policy on Returns to Shareholders and Dividends for the Fiscal Year Ended
4
March 31, 2017, and the Fiscal Year Ending March 31, 2018 ………………………………
II.
III.
IV.
V.
Status of the Corporate Group …………………………………………………………………
Basic Views on Selection of Accounting Standards…………………………………………
Consolidated Financial Statements
1.
Consolidated Balance Sheets …………………………………………………………………
2.
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
5
6
7
(Consolidated Statements of Income) …………………………………………………………
9
(Consolidated Statements of Comprehensive Income) ………………………………………
12
3.
Consolidated Statements of Changes in Net Assets…………………………………………… 13
4.
Consolidated Statements of Cash Flows………………………………………………………
5.
Notes to the Consolidated Financial Statements
15
1) Changes in accounting policies ……………………………………………………………
17
2) Segment Information ………………………………………………………………………
17
3) Subsequent Events …………………………………………………………………………
21
Attachment
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 and Sony Life’s
Preliminary MCEV as of March 31, 2017…………………………………………………………… 23
* The conference call for explaining the Sony Financial Group financial results will be held at 15:30 (Tokyo),
May 15, 2017. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on May 15, 2017 after 14:30 (Tokyo), and its
Q&A summary at a later date on Earnings Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/en/financial_info/results/index.html
* We will upload the press releases on Sony Life’s Market Consistent Embedded Value as of March 31, 2017,
scheduled as below.
･Full report: Scheduled to be uploaded on May 22, 2017 at 15:00 (Tokyo)
Please see further details at our website: http://www.sonyfh.co.jp/index_en.html
* On May 15, 2017, Sony Financial Holdings Inc.’s (SFH’s) significant subsidiaries: Sony Life Insurance Co.,
Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce
their financial results for the year ended March 31, 2017. SFH prepared an English-language summary of
those Japanese announcements made by the above subsidiaries, solely for convenience of non-Japanese
readers.
-1-
I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
1) Analysis of Operating Performance
During the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017), the Japanese economy was in a state of
modest recovery, against a backdrop of firm corporate earnings and steady improvements in the employment and income
situation. However, the economy was also affected by overseas economic trends, which included changes in economic
policies in the United Kingdom (U.K.) and the United States (U.S.), as well as the risk of downturns in China and other
emerging market economies. As a result, the outlook was uncertain.
In bond markets, long-term interest rates in Japan, which had been trending downward, turned upward in July 2016.
Following the results of the U.S. presidential elections in November 2016, yields on long-term government bonds rose
around the world, prompting a further slight rise in interest rates. Long-term interest rates in Japan remained low, however,
due to the Bank of Japan’s monetary easing policy.
In foreign exchange markets, the U.K.’s decision to exit the European Union and waning expectations of a further interest
rate hike in the U.S. led to yen appreciation. Thereafter, expectations surrounding the new U.S. administration’s financial
policies and the U.S. decision to raise interest rates in December 2016 caused the yen to depreciate against the U.S. dollar.
From the beginning of 2017, growing uncertainty about U.S. policy operations caused the yen to trend slightly upward again.
Amid these circumstances, the Sony Financial Group sought to become the financial services group most highly trusted by
customers. To this end, we undertook a variety of measures to maintain a sound financial base, reinforce and expand our
product and service offerings in order to deliver high-value-added products and high-quality services to each of our
customers, and enhance our internal control system.
Consolidated ordinary revenues increased 1.4% year on year, to ¥1,381.6 billion, owing to increases in ordinary
revenues from all the businesses: life insurance, non-life insurance and banking businesses. Consolidated ordinary profit
decreased 6.7% year on year, to ¥66.3 billion, owing to decreases in ordinary profit from the life insurance and the banking
businesses, whereas ordinary profit from the non-life insurance business increased. Profit attributable to owners of the
parent, after accounting for extraordinary losses, provision for reserve for policyholders’ dividends and income taxes, was
down 4.0% year on year, to ¥41.6 billion due to the decrease in ordinary profit.
Operating results by business segment are as described below.
Ordinary Revenues
Life insurance business
Non-life insurance business
Banking business
Subtotal
Other*1
Intersegment adjustments
Consolidated
(Billions of yen)
Year ended
March 31, 2016
Year ended
March 31, 2017
(Apr. 1, 2015, to Mar. 31, 2016)
(Apr. 1, 2016, to Mar. 31, 2017)
1,230.2
96.9
37.9
1,365.1
(3.0)
1,362.0
1,243.9
102.3
38.5
1,384.7
0.2
(3.3)
1,381.6
Ordinary Profit
Life insurance business
Non-life insurance business
Banking business
Subtotal
Other*1
Intersegment adjustments*2
Consolidated
Change (%)
1.1
5.6
1.5
1.4
1.4
(Billions of yen)
Year ended
March 31, 2016
Year ended
March 31, 2017
(Apr. 1, 2015, to Mar. 31, 2016)
(Apr. 1, 2016, to Mar. 31, 2017)
60.2
4.6
5.9
70.8
0.2
71.1
56.8
5.0
5.0
66.8
(0.7)
0.2
66.3
Change (%)
(5.7)
6.8
(15.6)
(5.7)
(18.7)
(6.7)
*1: “Other” consists of nursing care business which has been included in the scope of consolidation from the year ended March 31, 2017.
*2: Amounts in the “Intersegment adjustments” of the Ordinary profit are mainly from SFH.
-2-
2) Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2018
For the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018), we expect business growth to continue in all the
businesses.
Consolidated ordinary revenues are expected to increase, while consolidated ordinary profit and profit attributable to
owners of the parent are expected to be essentially flat.
* The effects of market fluctuations after April 1, 2017 have not been incorporated within the forecast.
The forecast of consolidated financial results for the year ending March 31, 2018 below remains unchanged from the
forecast announced on April 28, 2017.
(Billions of yen)
(Reference)
Forecast
Actual results for the year
for the year ending
Change (%)
ended March 31, 2017
March 31, 2018
Ordinary revenues
1,381.6
1,430.0
3.5
Ordinary profit
66.3
67.0
1.0
Profit attributable to owners of
the parent
41.6
42.0
0.9
Net income per share (Yen)
95.69
96.56
-
Forecast by business segment is as follows.
Forecast figures from each business reflect corporate and eliminations.
<Life insurance business>
Ordinary revenues are expected to increase year on year because we anticipate stable increases in insurance premium
revenues. Ordinary profit is expected to be almost flat because we expect the provision of policy reserves to rise in line with
revision in standard yields used for calculating policy reserves even though we expect an improvement in net gains/losses on
derivative transactions to hedge market risks related to minimum guarantees for variable life insurance as well as an increase
in profit from accumulated policies in force.
(Billions of yen)
(Reference)
Forecast
Actual results for the year
for the year ending
Change (%)
ended March 31, 2017
March 31, 2018
Ordinary revenues
Ordinary profit
1,243.9
1,276.1
56.8
56.4
2.6
(0.7)
<Non-life insurance business>
Ordinary revenues are expected to increase year on year, in line with growth in net premiums written primarily for
automobile insurance. Ordinary profit is expected to decrease year on year because we expect the loss ratio to be higher due
to higher provision for reserve for outstanding losses than in the year ended March 31, 2017.
(Billions of yen)
(Reference)
Actual results for the year
ended March 31, 2017
Ordinary revenues
Ordinary profit
Forecast
for the year ending
March 31, 2018
102.3
108.9
5.0
4.6
-3-
Change (%)
6.4
(8.0)
<Banking business>
Ordinary revenues are expected to increase year on year, due to stable business growth, reflecting a growing balance of
mortgage loans and strengthened foreign currency business. Ordinary profit is expected to increase year on year, due mainly
to efforts to appropriately control operating expenses and the increase in ordinary revenues.
(Billions of yen)
(Reference)
Forecast
Actual results for the year
for the year ending
Change (%)
ended March 31, 2017
March 31, 2018
Ordinary revenues
Ordinary profit
38.5
40.6
5.4
5.0
6.6
30.6
2. Qualitative Information on Consolidated Financial Position
1) Assets, Liabilities and Net Assets
As of March 31, 2017, total assets amounted to ¥11,471.8 billion, up 10.8% from March 31, 2016. Among major
components of assets, securities, mostly Japanese government bonds, amounted to ¥8,857.4 billion, up 10.4% from March 31,
2016. Loans came to ¥1,720.0 billion, up 13.5%.
Total liabilities were ¥10,870.7 billion, up 11.5% from March 31, 2016. Major components of liabilities included policy
reserves and others of ¥8,113.1 billion, up 8.1%, and deposits totaled ¥2,071.0 billion, up 8.3%.
Total net assets were ¥601.1 billion, down 0.5% from March 31, 2016. This included net unrealized gains on other
securities, net of taxes, which decreased ¥22.5 billion, to ¥134.8 billion.
2) Cash Flows
Net cash provided by operating activities for the year ended March 31, 2017, was ¥692.4 billion, primarily due to revenue
from insurance premiums in the life insurance business, up ¥89.9 billion year on year.
Net cash used in investing activities was ¥624.7 billion, primarily due to payments to acquire securities in the life
insurance business, which exceeded proceeds from sale and redemption of securities in the banking and the life insurance
businesses as well as proceeds from net increase in collateral for securities lending transactions in the life insurance business,
up ¥65.9 billion, year on year.
Net cash used in financing activities came to ¥34.0 billion primarily due to payments for cash dividends and redemption
of bonds, up ¥16.6 billion year on year.
As a result of the above factors and others, cash and cash equivalents at March 31, 2017, were ¥268.3 billion, up ¥34.7
billion from March 31, 2016.
3. Basic Policy on Returns to Shareholders and Dividends for the Fiscal Year Ended March 31, 2017,
and the Fiscal Year Ending March 31, 2018
Basic Policy on Returning Profits to Shareholders
SFH aims for steady increases in dividends in line with earnings growth over the medium to long term, while securing
sufficient internal reserves to ensure the financial soundness of Group companies and to invest in growth fields. Management
will examine earnings growth over the medium to long term by taking into account not only statutory profit but also other
economic value-based profit indicators that are more suitable for valuing the growth of the life insurance business.
Furthermore, management will determine specific dividend amounts for each year by taking into account a comprehensive
range of factors surrounding the Sony Financial Group.
-4-
Dividends for the Fiscal Year Ended March 31, 2017, and the Fiscal Year Ending March 31, 2018
As previously announced, dividends for the year ended March 31, 2017, will be ¥55 per share (total amount of dividends:
¥23.922 billion).
For the year ending March 31, 2018, we forecast dividends of ¥55 per share, unchanged from the amount planned for the
previous period.
The dividends based on the above Basic Policy on Returning Profits to Shareholders are expected to be more than 50% of
net income per share for the foreseeable future.
We will continue to make dividend payments once a year, following the resolution of the general meeting of shareholders,
with the dividend record date at the end of each year.
Please refer to the attached presentation materials for non-consolidated operating results of SFH’s principal subsidiaries,
Sony Life, Sony Assurance and Sony Bank for the year ended March 31, 2017.
II. Status of the Corporate Group
The Sony Financial Group is composed chiefly of Sony Life, Sony Assurance and Sony Bank. These companies are
direct subsidiaries of SFH, the financial holding company.
From the year ended March 31, 2017, two companies were included in the scope of consolidation: Sony Lifecare
Inc., which is a wholly owned subsidiary of SFH and a holding company that oversees the Group’s operations in the
nursing care business, and Lifecare Design Inc., which is a nursing care provider and a wholly owned subsidiary of
Sony Lifecare Inc.
SFH is a specified listed company, etc., as defined by Article 49-2 of the Cabinet Office Ordinance on Restrictions
on Securities Transactions, etc. As such, decisions founded on figures on a consolidated basis are subject to minor
criteria on material facts related to insider trading regulations.
The Group seeks to become the most highly trusted financial services group by customers. To this end, the Group
will combine many different financial functions (savings, investment, borrowing, and protection) to provide
high-value-added products and high-quality financial services that meet every customer’s financial needs. In accordance
with this vision, the Group conducts the life insurance, non-life insurance and banking businesses and other, the
principal operational contents of which are outlined below.
Life insurance business
(Consolidated subsidiary): Sony Life
(Affiliates accounted for by the equity method): AEGON Sony Life Insurance Co. (AEGON Sony Life), Ltd. and
SA Reinsurance Ltd.
Sony Life provides tailored life insurance through detailed consulting performed by Lifeplanner sales employees and
partners (independent agencies). AEGON Sony Life (a 50:50 joint venture between Sony Life and the AEGON
International B.V. in the Netherlands) handles variable annuity products.
Non-life insurance business
(Consolidated subsidiary): Sony Assurance
Sony Assurance provides such products as automobile insurance and medical insurance, via the Internet and telephone.
Banking business
(Consolidated subsidiaries): Sony Bank, Sony Payment Services Inc. (Sony Payment Services) and
SmartLink Network Hong Kong Limited
Sony Bank’s activities include handling deposits (yen and foreign currencies), mortgage loans, investment trusts and
foreign exchange margin transactions via the Internet. The primary business of Sony Payment Services is the operation
of a credit settlement operation.
SFH is a financial holding company established on April 1, 2004, as a corporate spin-off from Sony Corporation.
Sony Corporation holds a 63% stake in SFH as of March 31, 2017.
-5-
[Organizational chart (Primary businesses)] (As of March 31, 2017)
Sony
Corporation
Sony Financial
Holdings Inc.
<Life insurance business>
Sony Life Insurance
Co., Ltd.
<Life insurance
business>
AEGON Sony Life
Insurance Co., Ltd.
<Non-life insurance business>
Sony Assurance Inc.
<Banking business>
Sony Bank Inc.
<Banking
business>
Sony Payment
Services Inc.
<Life insurance
business>
SA Reinsurance
Ltd.
<Banking business>
SmartLink Network
Hong Kong Limited
Consolidated subsidiaries
Shareholding
Affiliated companies
accounted for under the
equity method
Sales and referrals of
the other’s products
III. Basic Views on Selection of Accounting Standards
SFH’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in
Japan. SFH is considering whether to adopt International Financial Reporting Standards (“IFRS”) while closely monitoring
the development of new accounting standards and the stance of regulatory bodies at home and abroad.
-6-
IV. Consolidated Financial Statements
1. Consolidated Balance Sheets
(Millions of yen)
As of March 31, 2016
As of March 31, 2017
¥144,364
¥206,481
88,200
61,900
884
573
Assets
Cash and due from banks
Call loans and bills bought
Monetary claims purchased
Monetary trusts
303,973
296,877
Securities
8,021,493
8,857,436
Loans
1,515,833
1,720,004
121,376
123,614
Land
83,007
83,007
Buildings
33,215
34,964
40
715
213
132
Tangible fixed assets
Leased assets
Construction in progress
Other tangible fixed assets
4,900
4,794
29,887
30,776
Software
29,836
30,146
Goodwill
19
49
Other intangible fixed assets
31
579
–
0
399
1,438
1,139
7,268
Intangible fixed assets
Due from agencies
Due from reinsurers
Foreign exchanges
Other assets
115,474
148,650
Net defined benefit asset
2,216
2,752
Deferred tax assets
8,181
15,313
(1,308)
(1,243)
Reserve for possible loan losses
Total Assets
¥10,352,114
-7-
¥11,471,845
(Millions of yen)
As of March 31, 2016
As of March 31, 2017
¥7,504,420
¥8,113,153
67,177
71,306
7,432,237
8,036,118
5,006
5,729
Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders’ dividends
Due to agencies
2,455
2,616
626
3,737
1,912,592
2,071,091
–
70,000
40,000
90,000
87
108
Bonds payable
20,000
10,000
Other liabilities
183,835
427,866
Due to reinsurers
Deposits
Call money and bills sold
Borrowed money
Foreign exchanges
Reserve for employees’ bonuses
3,557
3,694
29,263
31,399
351
366
44,410
46,182
44,410
46,182
5,647
–
488
488
9,747,736
10,870,705
Common stock
19,900
19,900
Capital surplus
195,277
195,277
Retained earnings
238,079
255,062
Net defined benefit liability
Reserve for directors’ retirement benefits
Special reserves
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets
Treasury Stock
(0)
Total shareholders’ equity
Net unrealized gains (losses) on other securities, net of taxes
(81)
453,256
470,157
157,364
134,849
Net deferred gains (losses) on hedging instruments, net of taxes
(2,347)
(1,154)
Land revaluation, net of taxes
(1,465)
(1,465)
Remeasurements of defined benefit plans, net of taxes
(3,760)
(2,756)
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets
-8-
149,791
129,472
–
49
1,329
1,460
604,377
601,139
¥10,352,114
¥11,471,845
2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
(Consolidated Statements of Income)
(Millions of yen)
For the year ended
March 31, 2016
Ordinary Revenues
Ordinary Revenues from the Life Insurance Business
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Income from monetary trusts, net
Gains on trading securities, net
For the year ended
March 31, 2017
¥1,362,044
¥1,381,667
1,227,409
1,240,764
1,026,615
955,252
1,024,974
952,547
1,640
2,704
170,048
244,839
140,981
147,785
11,973
4,493
98
152
Gains on sale of securities
12,204
1,308
Gains on derivatives, net
4,768
–
–
14,670
Foreign exchange gains, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Other underwriting income
Investment income
Interest income and dividends
Gains on sale of securities
Gains on redemption of securities
Transfer to interest and dividends on deposits of premiums
Other ordinary income
21
5
–
76,423
30,745
40,672
96,904
102,337
95,612
100,329
95,549
100,274
62
55
0
–
1,264
1,957
1,313
1,327
12
685
–
0
(62)
(55)
27
49
37,731
38,318
25,481
26,534
Interest income on loans
14,739
16,065
Interest income and dividends on securities
10,671
10,394
7
–
Interest income on deposits with banks
61
63
Interest income on interest rate swaps
–
8
Ordinary Revenues from the Banking Business
Interest income
Interest income on call loans and bills bought
2
1
Fees and commissions
Other interest income
6,679
6,673
Other operating income
5,189
4,871
4,263
4,431
Gains on foreign exchange transactions, net
Others
Other ordinary income
Other
Other ordinary income
926
439
379
238
–
247
–
247
(Continued)
-9-
(Millions of yen)
For the year ended
March 31, 2016
Ordinary Expenses
For the year ended
March 31, 2017
¥1,290,941
¥1,315,341
1,169,419
1,186,465
363,370
372,407
Insurance claims
84,283
84,178
Annuity payments
11,496
12,019
Ordinary Expenses from the Life Insurance Business
Insurance claims and other payments
Insurance benefits
74,842
98,252
184,936
168,409
Other payments
5,711
3,122
Reinsurance premiums
2,099
6,423
613,480
596,742
4,185
3,330
609,291
593,411
2
0
23,095
35,937
53
44
Losses on redemption of securities
1
53
Losses on derivatives, net
–
30,050
Surrender payments
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends
Investment expenses
Interest expenses
Foreign exchange losses, net
2,798
–
Provision for reserve for possible loan losses
5
–
Depreciation of real estate for rent and others
1,825
1,779
Other investment expenses
3,675
4,008
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Ordinary Expenses from the Non-life Insurance Business
Underwriting expenses
Net losses paid
14,735
–
132,896
136,645
36,578
44,733
91,522
96,639
67,326
70,094
48,111
50,181
Loss adjustment expenses
7,098
7,458
Net commission and brokerage fees
1,043
1,187
Provision for reserve for outstanding losses
1,877
798
Provision for underwriting reserves
9,195
10,469
0
–
4
3
4
0
Other underwriting expenses
Investment expenses
Losses on sale of securities
Other investment expenses
Operating, general and administrative expenses
Other ordinary expenses
–
3
24,188
26,520
3
19
(Continued)
- 10 -
(Millions of yen)
For the year ended
March 31, 2016
Ordinary Expenses from the Banking Business
Interest expenses
Interest expenses on deposits
Interest expenses on call money and bills sold
For the year ended
March 31, 2017
¥29,999
¥31,274
8,884
8,554
4,827
5,104
5
(17)
Interest on borrowed money
32
19
Interest expenses on bonds
98
74
3,921
3,372
0
0
2,437
3,648
181
86
18,347
18,843
147
142
–
962
–
962
71,103
66,326
2,793
2,032
Losses on disposal of fixed assets
882
134
Impairment losses
470
118
Interest expenses on interest rate swaps
Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses
Ordinary Profit
Extraordinary Losses
Provision for special reserves
1,440
1,772
1,440
1,772
–
7
3,564
4,153
Income Before Income Taxes
64,744
60,140
Income Taxes – Current
26,191
23,129
Provision for reserve for price fluctuations
Others
Provision for Reserve for Policyholders’ Dividends
Income Taxes – Deferred
(4,856)
(4,724)
Total Income Taxes
21,335
18,405
Profit
43,409
41,734
54
113
¥43,355
¥41,621
Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent
- 11 -
(Consolidated Statements of Comprehensive Income)
(Millions of yen)
For the year ended
March 31, 2016
Profit
For the year ended
March 31, 2017
¥43,409
¥41,734
30,198
(22,515)
Other comprehensive income
Net unrealized gains (losses) on other securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes
(261)
1,192
Land revaluation, net of taxes
14
–
Foreign currency translation adjustments
(1)
–
(2,254)
1,021
Remeasurements of defined benefit plans, net of taxes
Total other comprehensive income
Comprehensive income
27,695
(20,301)
¥71,105
¥21,433
71,068
21,301
37
131
(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests
- 12 -
3. Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2016
(Millions of yen)
Shareholders’ Equity
Common stock
Balance at the beginning
of the period
Changes during the
period
Dividends from surplus
Profit attributable to
owners of the parent
Purchase of treasury
stock
Net changes of items
other than
shareholders’ equity
Total changes during the
period
Balance at the end of the
period
Capital surplus
Retained earnings
Total shareholders’ equity
Treasury stock
¥19,900
¥195,277
¥212,124
¥ (0)
¥427,301
–
–
(17,399)
–
(17,399)
–
–
43,355
–
43,355
–
–
–
(0)
(0)
–
–
–
–
–
–
–
25,955
(0)
25,954
¥19,900
¥195,277
¥238,079
¥ (0)
¥453,256
Total accumulated other comprehensive income
Net
unrealized
gains (losses)
on other
securities,
net of taxes
Balance at the beginning
of the period
Changes during the
period
Dividends from surplus
Profit attributable to
owners of the parent
Purchase of treasury
stock
Net changes of items
other than
shareholders’ equity
Total changes during the
period
Balance at the end of the
period
¥127,166
Net deferred
gains (losses)
on hedging
instruments,
net of taxes
¥ (2,086)
Land
revaluation,
net of taxes
Foreign
currency
translation
adjustments
¥ (1,480)
¥0
Remeasurements
of defined
benefit plans, net
of taxes
¥ (1,522)
Total accumulated
other
comprehensive
income
Non-controlling
interests
¥122,078
¥1,292
Total net assets
¥550,672
–
–
–
–
–
–
–
(17,399)
–
–
–
–
–
–
–
43,355
–
–
–
–
–
–
–
(0)
30,198
(261)
14
(0)
(2,237)
27,713
37
27,750
30,198
(261)
14
(0)
(2,237)
27,713
37
53,705
¥157,364
¥ (2,347)
¥ (3,760)
¥149,791
¥1,329
¥604,377
¥ (1,465)
–
- 13 -
For the year ended March 31, 2017
(Millions of yen)
Shareholders’ Equity
Common stock
Balance at the beginning
of the period
Cumulative effects of
changes in accounting
policies
Restated balance at the
beginning of the period
Changes during the
period
Dividends from surplus
Profit attributable to
owners of the parent
Adjustments due to
change of scope of
consolidation
Purchase of treasury
stock
Net changes of items
other than
shareholders’ equity
Total changes during the
period
Balance at the end of the
period
Capital surplus
Retained earnings
Total shareholders’ equity
Treasury stock
¥19,900
¥195,277
¥238,079
¥ (0)
¥453,256
–
–
105
19,900
195,277
238,185
(0)
453,362
–
–
(23,924)
–
(23,924)
–
–
41,621
–
41,621
–
–
–
–
–
–
(818)
105
–
(818)
–
(81)
(81)
–
–
–
–
–
–
16,877
(81)
16,795
¥19,900
¥195,277
¥255,062
¥ (81)
¥470,157
Total accumulated other comprehensive income
Net
unrealized
gains (losses)
on other
securities,
net of taxes
Balance at the beginning
of the period
Cumulative effects of
changes in accounting
policies
Restated balance at the
beginning of the period
Changes during the
period
Dividends from surplus
Profit attributable to
owners of the parent
Adjustments due to
change of scope of
consolidation
Purchase of treasury
stock
Net changes of items
other than
shareholders’ equity
Total changes during the
period
Balance at the end of the
period
¥157,364
–
157,364
Net deferred
gains (losses)
on hedging
instruments,
net of taxes
¥ (2,347)
–
(2,347)
Land
revaluation,
net of taxes
¥ (1,465)
Remeasurements
of defined benefit
plans, net of taxes
¥ (3,760)
–
–
(1,465)
(3,760)
Total accumulated Subscription Non-controlling
rights to shares
interests
other
comprehensive
income
Total net assets
¥149,791
–
¥1,329
¥604,377
–
–
–
105
149,791
–
1,329
604,482
–
–
–
–
–
–
–
(23,924)
–
–
–
–
–
–
–
41,621
–
–
–
–
–
–
–
(818)
–
–
–
–
–
–
–
(81)
(22,515)
1,192
–
1,003
(20,319)
49
131
(20,138)
(22,515)
1,192
–
1,003
(20,319)
49
131
(3,343)
¥49
¥1,460
¥134,849
¥ (1,154)
¥ (1,465)
¥ (2,756)
- 14 -
¥129,472
¥601,139
4. Consolidated Statements of Cash Flows
(Millions of yen)
For the year ended
March 31, 2016
For the year ended
March 31, 2017
Cash flows from operating activities
Income before income taxes
¥64,744
Depreciation of real estate for rent and others
Depreciation and amortization
Impairment losses
Amortization of goodwill
Increase (decrease) in reserve for outstanding claims
Increase in policy reserve
Increase in interest portion of reserve for policyholders’
dividends
Increase (decrease) in reserve for policyholders’ dividends
Increase (decrease) in reserve for possible loan losses
Increase (decrease) in net defined benefit liability
Increase (decrease) in reserve for directors’ retirement benefits
Increase (decrease) in reserve for price fluctuations
Interest income and dividends
¥60,140
1,825
1,779
10,067
10,944
470
118
79
22
6,063
4,128
618,487
603,880
2
0
3,564
4,153
(113)
(65)
2,469
3,020
69
14
1,440
1,772
(167,777)
(175,647)
(Gains) losses on securities
7,620
(77,393)
Interest expenses
8,938
8,636
22,924
(10,843)
Exchange (gains) losses
Losses on disposal of tangible fixed assets
18
Equity in losses of affiliates
107
718
3,551
(156,996)
(195,446)
Net increase in deposits
Net increase (decrease) in borrowed money (excluding
subordinated borrowings)
Net (increase) decrease in call loans and bills bought
39,935
156,005
20,000
50,000
5,115
311
Net increase (decrease) in call money and bills sold
(6,000)
70,000
Net (increase) decrease in foreign exchange (assets)
1,085
(6,129)
Net (increase) decrease in loans
Net increase (decrease) in foreign exchange (liabilities)
40
21
Others, net
(16,020)
28,339
Subtotal
468,773
541,424
180,527
188,230
Interest paid
(9,196)
(8,730)
Policyholders’ dividends paid
(2,752)
(3,430)
(34,875)
(25,047)
602,475
692,445
Interest and dividends received
Income taxes paid
Net cash provided by operating activities
(Continued)
- 15 -
(Millions of yen)
For the year ended
March 31, 2016
For the year ended
March 31, 2017
Cash flows from investing activities
Investments in monetary trusts
–
¥ (76)
¥48,465
5,160
(1,327,890)
(1,171,569)
Proceeds from sale and redemption of securities
698,310
375,241
Investments in loans
(56,782)
(57,798)
28,761
27,949
62,804
247,803
(567)
(35,401)
(546,898)
(608,689)
55,576
83,755
Purchases of tangible fixed assets
(2,049)
(3,977)
Purchases of intangible fixed assets
(6,927)
(9,024)
Purchase of securities of a non-consolidated subsidiary
(1,500)
－
Purchase of securities of affiliates
(1,450)
(3,045)
Proceeds from sale of monetary trusts
Purchases of securities
Collections of loans
Net increase (decrease) in collateral for securities lending
transactions
Others
Total of net cash used in investment transactions
Total of net cash provided by (used in) operating activities and
investment transactions
Others
–
Net cash used in investing activities
(12)
(558,825)
(624,749)
(17,401)
(23,925)
Cash flows from financing activities
Cash dividends paid
Payments for Redemption of Bonds
–
Purchase of treasury stock
Others
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Increase (decrease) in cash and cash equivalents resulting from
change of scope of consolidation
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period
- 16 -
(10,000)
(0)
(81)
(36)
(51)
(17,437)
(34,057)
(13)
(1)
26,197
33,636
–
1,124
207,422
233,620
¥233,620
¥268,381
5. Notes to the Consolidated Financial Statements
1) Changes in accounting policies, accounting estimates and restatements of the Consolidated Financial
Statements
Changes in accounting policies
(Application of the “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26, March
28, 2016)(hereinafter, the “Recoverability Implementation Guidance”))
The Sony Financial Group has applied the Recoverability Implementation Guidance from the year ended March 31, 2017 and
partially revised the accounting method of recoverability of deferred tax assets.
The Recoverability Implementation Guidance has been applied in accordance with the transitional treatment set forth in Article
49(4) of the Recoverability Implementation Guidance. The differences between (i) the amounts of deferred tax assets and deferred
tax liabilities when provisions applicable from ① to ③ of Article 49(3) of the Recoverability Implementation Guidance were
applied as of April 1, 2016, and (ii) the amounts of deferred tax assets and deferred tax liabilities at the end of the year ended
March 31, 2016, were added to retained earnings as of April 1, 2016.
As a result, deferred tax assets increased ¥48 million and retained earnings rose ¥105 million, while deferred tax liabilities
decreased ¥56 million as of April 1, 2016.
Reflecting the amount of impact of net assets at the beginning of the year ended March 31, 2017 resulted in ¥105 million increase
in the beginning balance of retained earnings in the Consolidated Statements of Changes in Net Assets.
2) Segment Information
(1) Outline of reporting segments
The Sony Financial Group’ s reporting segments are components of the Group whose operating results are regularly
reviewed by the Board of Directors to make decisions about resources to be allocated to the segments and assess their
performance, for which discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Ltd., Sony Assurance Inc., Sony Bank Inc., and Sony
Lifecare Inc., and pursues financial group strategies. The subsidiaries make their own business plans and engage in business
activities from which they may earn revenues and incur expenses, under the Insurance Business Law of Japan, the Banking
Law of Japan, and other regulations.
The Sony Financial Group consists of three reporting segments: the life insurance business, the non-life insurance business
and the banking business.
●The life insurance business consists of Sony Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd.
and SA Reinsurance Ltd.
●The non-life insurance business consists of Sony Assurance Inc.
●The banking business consists of Sony Bank Inc., Sony Payment Services Inc. and SmartLink Network Hong
Kong Limited.
- 17 -
(2) Segment Information by reporting segment
For the year ended March 31, 2016
Life
insurance
business
Ordinary revenues
External customers
¥1,227,409
Intersegment
2,882
Total
1,230,292
Segment profit
60,224
Segment assets
8,033,369
Others
Depreciation
7,279
Interest income and
dividends
141,468
Interest expenses
53
Equity in earnings
(losses) of affiliates
(718)
Investments in affiliates
11,389
Increase in tangible
fixed assets and
intangible fixed assets
¥3,214
Millions of yen
Non-life
Banking
insurance
business
business
Total
¥96,904
1
96,905
4,680
172,370
¥37,731
206
37,937
5,988
2,140,286
¥1,362,044
3,090
1,365,135
70,893
10,346,027
2,645
2,449
12,373
1,313
–
25,482
9,022
168,264
9,076
–
–
–
–
¥2,898
¥2,706
(718)
11,389
¥8,818
For the year ended March 31, 2017
Millions of yen
Life
insurance
business
Ordinary revenues
External customers
¥1,240,764
Intersegment
3,161
Total
1,243,925
Segment profit
56,815
Segment assets
8,873,446
Others
Depreciation
7,178
Interest income and
dividends
148,300
Interest expenses
44
Equity in earnings
(losses) of affiliates
(3,551)
Investments in affiliates
10,986
Increase in tangible
fixed assets and
¥9,607
intangible fixed assets
Non-life
insurance
business
Banking
business
Total
¥102,337
0
102,337
5,001
186,569
¥38,318
196
38,514
5,053
2,438,836
¥1,381,420
3,358
1,384,778
66,870
11,498,851
3,493
2,618
13,290
41
13,331
1,327
–
26,533
8,672
176,162
8,717
0
36
176,162
8,753
–
–
–
–
¥3,500
¥2,451
(3,551)
10,986
¥15,559
other
Total
¥247 ¥1,381,667
–
3,358
247
1,385,026
(714)
66,155
3,544 11,502,396
–
–
¥46
(3,551)
10,986
¥15,606
(Note) “Other” consists of Sony Lifecare Inc., a holding company that oversees the Sony Financial Group’s operations in the nursing care
business, and nursing-care provider Lifecare Design Inc., which have been included in the scope of consolidation from the year ended
March 31, 2017.
- 18 -
(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts
Totals of reporting segments
Other
Adjustments for intersegment transactions
Ordinary revenues in statement of income
Millions of yen
For the year ended
For the year ended
March 31, 2017
March 31, 2016
¥1,365,135
¥1,384,778
–
247
(3,090)
(3,358)
¥1,362,044
¥1,381,667
Totals of reporting segments
Other
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in statement of income
Millions of yen
For the year ended
For the year ended
March 31, 2017
March 31, 2016
¥70,893
¥66,870
–
(714)
8
9
200
161
¥71,103
¥66,326
Totals of reporting segments
Other
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Assets in balance sheets
Millions of yen
For the year ended
For the year ended
March 31, 2016
March 31, 2017
¥10,346,027
¥11,498,851
–
3,544
(35,143)
(58,287)
41,230
27,736
¥10,352,114
¥11,471,845
Depreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) of affiliates
Investments in affiliates
Increase in tangible fixed assets and
intangible fixed assets
Millions of yen
For the year ended
For the year ended
March 31, 2016
March 31, 2017
Consolidated
Consolidated
Adjust
Adjust
Total
Other
financial
Total
Other
financial
ments
ments
statements
statements
¥12,373
¥–
¥16
¥12,390
¥13,356
¥13,290
¥41
¥24
168,264
– (486)
167,777
176,162
0 (514)
175,647
9,076
– (137)
8,938
8,717
36 (117)
8,635
(718)
–
–
(718)
–
–
(3,551)
(3,551)
11,389
–
–
11,389
10,986
–
–
10,986
¥8,818
¥–
- 19 -
¥0
¥8,819
¥15,559
¥46
¥269
¥15,875
Relative information
For the year ended March 31, 2016
1. Information by business segment
Life insurance
business
Ordinary revenues from
external customers
¥1,227,409
Millions of yen
Non-life
Banking
insurance
business
business
¥96,904
¥37,731
Total
¥1,362,044
2. Geographic segment information
(1) Ordinary revenues
Ordinary revenues information by geographic segment is not shown, as ordinary revenues from external customers in
Japan accounted for more than 90% of ordinary revenues in the consolidated statements of income.
(2) Tangible fixed assets
Information on tangible fixed assets by geographic segment is not shown, as tangible fixed assets in Japan accounted
for more than 90% of tangible fixed assets in the consolidated balance sheets.
3. Information by major client
Information by major client is not shown, as ordinary revenues from external customers who are major clients
accounted for less than 10% of ordinary revenues in the consolidated statements of income.
For the year ended March 31, 2017
1. Information by business segment
Millions of yen
Life insurance
business
Ordinary revenues from
external customers
¥1,240,764
Non-life
insurance
business
¥102,337
Banking
business
¥38,318
Others
¥247
Total
¥1,381,667
2. Geographic segment information
(1) Ordinary revenues
Ordinary revenues information by geographic segment is not shown, as ordinary revenues from external customers in
Japan accounted for more than 90% of ordinary revenues in the consolidated statements of income.
(2) Tangible fixed assets
Information on tangible fixed assets by geographic segment is not shown, as tangible fixed assets in Japan accounted
for more than 90% of tangible fixed assets in the consolidated balance sheets.
3. Information by major client
Information by major client is not shown, as ordinary revenues from external customers who are major clients
accounted for less than 10% of ordinary revenues in the consolidated statements of income.
- 20 -
Information on impairment losses on fixed assets by business segment
For the year ended March 31, 2016
Millions of yen
Reporting segments
Life insurance
business
Impairment losses
¥362
Non-life
insurance
business
－
Others
Banking
business
Consolidated
Total
¥362
－
¥107
¥470
For the year ended March 31, 2017
Millions of yen
Reporting segments
Life insurance
business
Impairment losses
¥7
Non-life
insurance
business
－
Others
Banking
business
Consolidated
Total
90
¥98
19
¥118
Information on amortization of goodwill and unamortized balance by business segment
For the year ended March 31, 2016
Millions of yen
Reporting segments
Life insurance
business
Amortization of
goodwill
Balance at end of
period
Non-life
insurance
business
Others
Banking
business
Consolidated
Total
－
－
¥79
¥79
－
¥79
－
－
¥19
¥19
－
¥19
For the year ended March 31, 2017
Millions of yen
Reporting segments
Life insurance
business
Amortization of
goodwill
Balance at end of
period
Non-life
insurance
business
Others
Banking
business
Consolidated
Total
－
－
¥19
¥19
3
¥22
－
－
－
－
49
¥49
Information on negative goodwill by business segment
No applicable items to be reported.
3) Subsequent Events
There were no applicable subsequent events.
- 21 -
SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ in
significant respects from the financial information reported by Sony Corporation, SFH’s parent company, which
prepares its financial statements in accordance with U.S. GAAP.
* SFH’s scope of consolidation includes following companies:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited.
Sony Lifecare Inc**
Lifecare Design Inc.**
** Sony Lifecare Inc. and Lifecare Design Inc. are included in the scope of consolidation from the first quarter
ended June 30, 2016.
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.
Statements made in this press release concerning the current plans, expectations, strategies and beliefs of the
Sony Financial Group. Any statements contained herein that are not historical facts are forward-looking
statements or pro forma information. Forward-looking statements may include—but are not limited to—words
such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,”
“intend” and “possibility” that describe future operating activities, business performance, events or conditions.
Forward-looking statements, whether spoken or written, may also be included in other materials released to
the public. These forward-looking statements and pro forma information are based on assumptions, decisions
and judgments made by the management of Sony Financial Group companies, and are based on information
that is currently available to them. As such, they are subject to various risks and uncertainties, and actual
business results may vary substantially from the forecasts expressed or implied in forward-looking statements.
Consequently, investors are cautioned not to place undue reliance on forward-looking statements. Sony
Financial Group companies are under no obligation to revise forward-looking statements or pro forma
information in light of new information, future events or other findings. The information contained in this press
release does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of
any offer to buy or subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in
connection with any contract or commitment whatsoever in Japan or abroad.
For inquiries:
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5290-6500
E-mail: [email protected]
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html
- 22 -
V. Attachment
Content of Presentation Material
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 and
Sony Life’s MCEV as of March 31, 2017
・
・
・
・
・
Consolidated Operating Results for the Fiscal Year Ended March 31, 2017 (FY2016) ………………
Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2018 (FY2017) …
Changes in Medium-term Dividend Policy and Dividend Forecast for FY2017………………………
Sony Life’s Preliminary MCEV and ESR as of March 31, 2017………………………………………
Appendix ………………………………………………………………………………………………
- 23 -
3
31
33
35
38
Attachment
Presentation Material
Consolidated Financial Results
for the Fiscal Year Ended March 31, 2017
and
Sony Lifeʼs Preliminary MCEV
as of March 31, 2017
Sony Financial Holdings Inc.
May 15, 2017
Sony Financial Holdings Inc. All Rights Reserved
Content
 Consolidated Operating Results for the Fiscal Year Ended March 31, 2017
(FY2016)
P.3
 Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2018 (FY2017)
P.31
 Changes in Medium-term Dividend Policy and Dividend Forecast for FY2017
P.33
 Sony Lifeʼs Preliminary MCEV and ESR as of March 31, 2017
P.35
 Appendix
P.38
Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony
Financial Group. Any statements contained herein that are not historical facts are forward-looking statements or pro forma
information. Forward-looking statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,”
“strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities,
business performance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in other
materials released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions
and judgments made by the management of Sony Financial Group companies, and are based on information that is currently
available to them. As such, they are subject to various risks and uncertainties, and actual business results may vary substantially
from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue
reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking
statements or pro forma information in light of new information, future events or other findings. The information contained in this
presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or
commitment whatsoever in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.
Sony Financial Holdings Inc. All Rights Reserved
2
Attachment
Consolidated Operating Results
for the Fiscal Year Ended March 31, 2017
(FY2016)
Sony Financial Holdings Inc. All Rights Reserved
3
Management Message
Amid an environment of ultralow interest rates, we expeditiously
introduced measures to improve profitability, and all three businesses
steadily expanded their business scale.
 Sony Life ensured profitability through product revisions and product shifts
toward US dollar-denominated insurance and term life insurance. Efforts to
recruit Lifeplanner sales employees significantly outpaced plans,
accelerating expansion of Sony Lifeʼs sales foundation. Ordinary profit was
flat, but MCEV increased thanks to expanded business scale and a market
recovery.

Financial
Results for
FY2016
Forecast of
Financial
Results for
FY2017
We forecast that all three businesses will expand their business scale, but
expect ordinary profit to be flat.
 At Sony Life, we expect ordinary profit to be flat due to an increase in the
provision of policy reserves, stemming from the April 2017 revision in
standard yields used for calculating policy reserves. However, we anticipate
a rise in MCEV due to the steady accumulation of new business value.

As the expansion of business scale accelerates, we will determine specific
dividend amounts by taking into account not only statutory profit but also
other economic value-based profit indicators.
 For FY2017, we plan to maintain the dividend amount at ¥55 per share.
For the foreseeable future, we plan to pay a dividend corresponding to
more than 50% of net income per share.

Dividend Policy/
Shareholder
Returns
Sony Financial Holdings Inc. All Rights Reserved
4
Attachment
Highlights of Consolidated Operating Performance (1)
Consolidated ordinary revenues
Consolidated ordinary profit
1,362.0
+1.4%
1,381.6
(JPY bn)
66.3
71.1
FY2016
1,230.2
1,243.9
+13.6
Change
+1.1%
Life insurance
business
Ordinary profit
60.2
56.8
(3.4)
(5.7%)
Non-life
insurance
business
Ordinary revenues
96.9
102.3
+5.4
+5.6%
4.6
5.0
+0.3
+6.8%
Banking
business
Ordinary revenues
37.9
38.5
+0.5
+1.5%
Intersegment
adjustments*
Ordinary revenues
Ordinary profit
Ordinary profit
5.9
5.0
(0.9)
(15.6%)
(3.0)
(3.1)
(0.0)
-
0.2
(0.5)
(0.7)
-
1,362.0
1,381.6
+19.6
+1.4%
Ordinary profit
71.1
66.3
(4.7)
(6.7%)
Profit attributable
to owners of the
parent
43.3
41.6
(1.7)
(4.0%)
Ordinary profit
Ordinary revenues
(6.7%)
FY2015
Ordinary revenues
Consolidated
*Ordinary profit in “Intersegment adjustments” is mainly from SFH. Nursing care business has
been included in the scope of consolidation from FY16.1Q.
(JPY bn)
(Note) Comprehensive income : FY2015: ¥71.1 billion, FY2016: ¥21.4 billion
FY2015
FY2016
(JPY bn)
Consolidated
Mar. 16
Net assets
Total assets
Mar. 17
Change from
Mar. 16
604.3
601.1
(3.2)
(0.5%)
10,352.1
11,471.8
+1,119.7
+10.8%
Sony Financial Holdings Inc. All Rights Reserved
Highlights of Consolidated Operating Performance
5
(2)
Life Insurance Business: Ordinary revenues increased year on year, due to an increase in investment income
in the separate account, which positive effect was partially offset by a decrease in insurance premium
revenues led by a decline in sales of single premium products. Ordinary profit decreased due to a
deterioration in performance at affiliated companies, although ordinary profit at Sony Life was flat year on
year.
As for Sony Life, positive factors, including a decline in the provision of policy reserves for minimum
guarantees for variable life insurance owing to a lower acquisition of new policies and an improvement in
market conditions, and an increase in profit from accumulated policies in force, were offset by such negative
factors as a deterioration in net gains/losses on derivative transactions to hedge market risks related to
minimum guarantees for variable life insurance and lower gains on sale of securities in the general account.
Non-life Insurance Business: Ordinary revenues rose year on year, owing to an increase in net premiums
written primarily for mainstay automobile insurance. Ordinary profit increased year on year, due mainly to a
decline in provision for reserve for outstanding losses, an increase in underwriting profit and higher
investment income, partially offset by an increase in operating expense.
Banking Business: Ordinary revenues increased year on year due to an increase in interest income on loans
in line with a favorably growing balance of mortgage loans, partially offset by a decrease in interest and
dividend income on securities. Ordinary profit decreased year on year due to the lower level of interest rates,
an increase in initial expenses led by a higher execution of mortgage loans, and lower volumes of foreign
currency and investment trust transactions of customers.
Consolidated ordinary revenues increased 1.4% year on year, to ¥1,381.6 billion, owing to increases in
ordinary revenues from all the businesses: life insurance business, non-life insurance and banking businesses.
Consolidated ordinary profit decreased 6.7% year on year, to ¥66.3 billion, owing to decreases in ordinary
profit from the life insurance and the banking businesses, whereas ordinary profit from the non-life insurance
business increased. Profit attributable to owners of the parent was down 4.0% year on year, to ¥41.6 billion
due to the decrease in consolidated ordinary profit.
Sony Financial Holdings Inc. All Rights Reserved
6
Attachment
Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary profit
Ordinary revenues
1,230.1
+1.1%
(JPY bn)
Ordinary revenues
1,243.7
Income from insurance premiums
Investment income
Interest income and dividends
60.1
60.7
(1.0%)
FY2015
FY2016
◆ Ordinary revenues increased year on year.
◆ Income from insurance premiums decreased led
by a decline in sales of single premium products.
◆ Investment income increased due mainly to an
increase in investment income in the separate
account.
◆ Ordinary profit was flat year on year. This was
due to positive factors, including a decline in the
provision of policy reserves for minimum
guarantees for variable life insurance owing to a
lower acquisition of new policies and an
improvement in market conditions, and an
increase in profit from accumulated policies in
force, were offset by such negative factors as a
deterioration in net gains/losses on derivative
transactions to hedge market risks related to
minimum guarantees for variable life insurance
and lower gains on sale of securities in the
general account.
FY2016
Change
1,230.1
1,243.7
+13.5
+1.1%
1,028.0
956.7
(71.3)
(6.9%)
170.5
245.3
+74.8
+43.9%
141.4
148.2
+6.8
+4.8%
Income from monetary trusts, net
11.9
4.4
(7.4)
(62.5%)
Gains on sale of securities
12.2
1.3
(10.8)
(89.3%)
Foreign exchange gains, net
－
14.6
+14.6
－
Gains on separate accounts, net
－
76.4
+76.4
－
Ordinary expenses
(JPY bn)
FY2015
1,169.3
1,183.5
+14.2
+1.2%
Insurance claims and other payments
363.3
372.4
+9.0
+2.5%
Provision for policy reserves and others
613.4
596.7
(16.7)
(2.7%)
23.3
36.1
+12.7
+54.7%
－
30.0
+30.0
－
14.7
－
(14.7)
(100.0%)
133.3
137.0
+3.7
+2.8%
Investment expenses
Losses on derivatives, net
Losses on separate accounts, net
Operating expenses
Ordinary profit
60.7
60.1
(0.6)
(1.0%)
Net income
37.0
35.1
(1.9)
(5.2%)
Mar. 17
Change from Mar. 16
Securities
7,273.3
8,093.1
+819.8
Policy reserves
7,336.5
7,929.9
+593.4
+8.1%
482.1
473.5
(8.6)
(1.8%)
150.6
127.7
(22.8)
(15.2%)
8,035.4
8,873.6
+838.2
+10.4%
850.3
989.6
+139.2
+16.4%
(JPY bn)
Net assets
Net unrealized gains on other securities
Total assets
Separate account assets
Mar. 16
+11.3%
7
Sony Financial Holdings Inc. All Rights Reserved
Overview of Operating Performance:
Sony Life (Non-consolidated)
(JPY bn)
FY2015
FY2016
Change
New policy amount
5,151.3
4,957.5
(3.8%)
Lapse and surrender amount
1,931.4
1,839.3
(4.8%)
Lapse and surrender rate
Policy amount in force
Annualized premiums from new policies
Of which, third-sector products
Annualized premiums from insurance in force
Of which, third-sector products
4.72%
4.27%
(0.45pt)
43,149.8
45,334.1
+5.1%
85.0
78.1
(8.1%)
15.7
15.7
+0.0%
781.3
820.8
+5.1%
179.7
187.4
+4.3%
Notes:
1. Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as the
total of individual life insurance and individual annuities.
2. The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders,
not adjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.
(JPY bn)
FY2015
FY2016
Change
161.8
132.7
(18.0%)
Core profit
43.0
83.8
+94.9%
Positive spread
15.3
15.4
+0.7%
Gains from investment, net (General account)
Mar. 16
Non-consolidated solvency margin ratio
2,722.8%
Mar. 17
2,568.8%
Change from
Mar. 16
<Reasons for changes>
◆ Decreased due to lower sales
of variable life insurance
despite favorable sales of U.S.
dollar-denominated insurance
and term life insurance.
◆Decreased due to lower sales
of variable life insurance and
single premium whole life
products despite favorable
sales of term life insurance and
U.S. dollar-denominated
insurance.
◆ Increased due to a decline in
the provision of policy reserves
for minimum guarantees for
variable life insurance owing to
a lower acquisition of new
policies and an improvement in
market conditions, and an
increase in profit from
accumulated policies in force.
(154.0pt)
Sony Financial Holdings Inc. All Rights Reserved
8
Attachment
Operating Performance :
Sony Life (Non-consolidated) (1)
Number and Amount of New Policies
Annualized Premiums from New Policies
(Individual Life Insurance + Individual Annuities)
New policy amount
606
Number of new policies
629
Annualized premiums from new policies
（JPY tn）
5
4.77
4.95
5.15
600
500
400
(3.8%)
4
300
3
（JPY bn）
80
85.0
76.6
(8.1%)
78.1
60
40
200
2
100
1
0
Of which, third-sector
（Thousands
of policies)
(18.5%)
513
6
(Individual Life Insurance + Individual Annuities)
FY2014
FY2015
FY2016
0
20
+0.0%
15.2
15.7
15.7
FY2014
FY2015
FY2016
0
Sony Financial Holdings Inc. All Rights Reserved
9
Operating Performance :
Sony Life (Non-consolidated) (2)
Annualized Premiums from New Policies by Product
FY2015（12M） ¥85.0 billion
Yen whole
Endowment/ life 28%
Annuities
28%
U.S. dollarSingle premium denominated
whole life 2%
Whole life
5%
Protection-type
（term life）
37%
FY2016（12M） ¥78.1 billion
Yen whole
Endowment/ life 14%
Annuities
U.S. dollar21%
⼀時払終⾝
Single premium denominated
whole life 8%
1%life
Whole
1%
Protection-type
（term life）
56%
Sony Financial Holdings Inc. All Rights Reserved
10
Attachment
Operating Performance :
Sony Life (Non-consolidated) (3)
Number and Amount of Policies in Force
Annualized Premiums from Insurance in Force
(Individual Life Insurance + Individual Annuities)
Policy amount in force
+3.7 %
6.67
50
40
40.9
Annualized premiums from insurance in force
Number of policies in force
（JPY tn）
60
(Individual Life Insurance + Individual Annuities)
7.30
7.04
43.1
+5.1 %
（Millions
（JPY bn）
of policies)
8
800
6
600
4
400
2
200
735.7
781.3
Of which, third-sector
+5.1%
820.8
45.3
30
20
10
0
0
Mar. 15
Mar. 16
172.8
179.7
Mar. 15
Mar. 16
+4.3%
187.4
0
Mar. 17
Sony Financial Holdings Inc. All Rights Reserved
Mar. 17
11
Operating Performance :
Sony Life (Non-consolidated) (4)
Lapse and Surrender Rate*
(Individual Life Insurance + Individual Annuities)
（%）
8
6
5.35
4.72
4
4.27
(0.45pt)
2
0
FY2014
FY2015
FY2016
*The lapse and surrender rate shows the ratio derived by dividing the amount of
lapses and surrenders, not adjusted for policy amount decreases, increases, and
reinstatements, by the policy amount in force at the beginning of the fiscal year.
Sony Financial Holdings Inc. All Rights Reserved
12
Attachment
Operating Performance :
Sony Life (Non-consolidated) (5)
Interest Income and Dividends
Income from Insurance Premiums
(JPY bn)
(JPY bn)
1,000
1,028.0
914.0
956.7
150
141.4
133.5
+4.8%
148.2
(6.9%)
800
100
600
400
50
200
0
0
FY2014
FY2015
FY2014
FY2016
FY2015
FY2016
13
Sony Financial Holdings Inc. All Rights Reserved
Operating Performance :
Sony Life (Non-consolidated) (6)
Ordinary Profit
Core Profit
(JPY bn)
80
(JPY bn)
83.8
76.5
80
79.6
+94.9%
60
40
60
43.0
20
0
0
FY2014
FY2015
(Reference) Impact on core profit
(JPY bn)
(1.0%)
40
20
Positive spread
Provision of policy reserves for
minimum guarantees for variable life
insurance (*)
Others
60.1
60.7
FY2014
FY2016
FY2014
FY2015
FY2016
13.0
15.3
15.4
(10.6)
(34.7)
(7.8)
74.1
62.5
76.2
FY2015
FY2016
(Reference) Main differences from core profit
(JPY bn) FY2014
Capital gains (losses) excluding gains or
losses on hedges (*)
Gains (losses) on hedges of variable life
insurance
Provision of contingency reserve (*)
10.7
FY2015
FY2016
20.4
(0.4)
(2.3)
3.9
(15.6)
(5.0)
(6.4)
(7.2)
*“Provision of policy reserves for minimum guarantees for variable life insurance” and “Provision of contingency reserve” are described as negative amount.
Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
Sony Financial Holdings Inc. All Rights Reserved
14
Attachment
Operating Performance :
Sony Life (Non-consolidated) (7)
Number of Lifeplanner Sales Employees
+321
(Number)
4,933
5,000
4,612
4,500
4,329
4,352
Mar. 15
Jun. 15
4,415
4,682
4,751
4,730
+203
4,376
4,000
3,500
3,000
0
Sep. 15
Dec. 15
Mar. 16
Jun. 16
Sep. 16
Dec. 16
Mar. 17
15
Sony Financial Holdings Inc. All Rights Reserved
Operating Performance :
Sony Life (Non-consolidated) (8)
Diversify asset management under the negative interest rate environment
(purchase securities in the general account assets)
FY2014（12M）Japanese
stocks
0.4%
Other
securities
0.4%
⽶国債 ×%
外国公社債
Foreign
bonds3.9%
3.9%
Foreign bonds
Japanese stocks
Other securities
Foreign bonds
Japanese
2.3%
stocks
0.5%
外国公社債
Japanese
2.3%
社債
corporate
bonds
11.9%
11.9%
JGBs
国債
85.3%
85.3%
continue to invest in assets that match the liability
characteristics.
JGBs
JGBs
国債
95.4%
95.4%
FY2015 (12M）
■Promote diversification of investment assets while
・Expand investments in ultralong-term Japanese
corporate bonds (including FILP agency bonds)
・Significantly increase investments in U.S. government
bonds, responding to higher sales of U.S. dollar
denominated insurance policies.
FY2016（12M）
JGBs
Japanese
corporate bonds
Foreign bonds
Japanese stocks
Japanese local
government bonds 0.1%
Japanese
Stocks 0.5%
Foreign
bonds
28.3%
JGBs
国債
JGBs
×%
42.5%
Japanese
社
Corporate
×%
bonds
28.6%
Japanese corporate
bonds
Foreign bonds
Japanese stocks
Japanese local
government bonds
Notes:
1. Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
2. The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)
Sony Financial Holdings Inc. All Rights Reserved
16
Attachment
Operating Performance :
Sony Life (Non-consolidated) (9)
Breakdown of General Account Assets
Mar. 16
(JPY bn)
Amount
<Asset management review>
Mar. 17
%
Amount
%
Japanese bonds
(including JGBs)
6,351.1
88.4%
6,828.7
86.6%
Japanese stocks
33.3
0.5%
37.6
0.5%
Foreign bonds
70.1
1.0%
274.3
3.5%
Foreign stocks
23.0
0.3%
31.5
0.4%
Monetary trusts
280.9
3.9%
273.8
3.5%
Policy loans
171.6
2.4%
180.3
2.3%
Real estate*
115.8
1.6%
117.5
1.5%
Cash and call loans
52.5
0.7%
40.8
0.5%
Others
86.4
1.2%
99.1
1.3%
7,185.0
100.0%
7,884.0
100.0%
Total
We have continued to accumulate
ultralong-term bonds to match the liability
characteristics of insurance policies with
long-term maturities with the aim of
reducing interest rate risk.
<Bond duration>
Mar. 15 20.3 years
Mar. 16 21.8 years
Mar. 17 21.3 years
■ Investment in the monetary trusts is
mainly into Japanese government bonds.
■ The holding ratio on the real status of
Japanese government and corporate
bonds including those invested in
monetary trusts in the general account
assets: Mar. 17・・・90.1%
（Mar. 16・・・92.3 %）
*Real estate is the total of land, buildings, and construction in progress.
17
Sony Financial Holdings Inc. All Rights Reserved
Operating Performance :
Sony Life (Non-consolidated) (10)
Average Assumed Interest Rate and
Investment Yield for Core Profit
Positive Spread
Average assumed interest rate
Investment yield for core profit
(JPY bn)
15.3
15
+0.7%
15.4
（%）
3.00
13.0
2.35
10
2.00
2.12
2.31
2.06
2.24
2.00
5
0
FY2014
FY2015
FY2016
1.00
FY2014
Sony Financial Holdings Inc. All Rights Reserved
FY2015
FY2016
18
Attachment
Operating Performance :
Sony Life (Non-consolidated) (11)
Non-consolidated Solvency Margin Ratio
（%）
3,000
2,568.8
2,722.8
2,555.0
2,500
(154.0pt)
2,000
1,500
1,0000
Mar. 15
Mar. 16
Mar. 17
19
Sony Financial Holdings Inc. All Rights Reserved
Highlights of Operating Performance:
Sony Assurance
Ordinary revenues
96.9
+5.6%
Ordinary profit
102.3
(JPY bn)
FY2015
Ordinary revenues
4.9
102.3
+5.4
+5.6%
95.6
100.3
+4.7
+4.9%
1.2
1.9
+0.6
+54.9%
92.2
97.3
+5.1
+5.5%
67.7
70.5
+2.7
+4.1%
0.0
0.0
(0.0)
(92.6%)
24.4
26.7
+2.3
+9.6%
Ordinary profit
4.6
4.9
+0.3
+6.8%
Net income
2.5
3.5
+0.9
+35.9%
Investment income
Ordinary expenses
4.6
Underwriting expenses
Investment expenses
(JPY bn)
FY2015
Operating general and
administrative expenses
FY2016
◆ Both ordinary revenues and ordinary profit
increased year on year.
 Ordinary revenues expanded owing to an increase
in net premiums written primarily for mainstay
automobile insurance.
◆ Ordinary profit increased due mainly to a decline in
provision for reserve for outstanding losses, an
increase in underwriting profit and higher
investment income, partially offset by an increase
in operating expenses.
◆ Net income increased owing to the recording of a
loss on disposal of software in progress of ¥0.8
billion as an extraordinary loss in FY2015, in
addition to the increase in ordinary profit.
Change
96.9
Underwriting income
+6.8%
FY2016
(JPY bn)
Mar. 16
Mar. 17
Change from
Mar. 16
Underwriting reserves
95.7
106.1
+10.4
+10.9%
Net assets
28.3
29.4
+1.1
+3.9%
172.3
186.5
+14.2
+8.2%
Total assets
Sony Financial Holdings Inc. All Rights Reserved
20
Attachment
Overview of Operating Performance:
Sony Assurance
(JPY bn)
FY2015
FY2016
<Reasons for changes>
Change
Direct premiums written
94.3
99.0
+5.0%
Net premiums written
95.5
100.2
+4.9%
Net losses paid
48.1
50.1
+4.3%
3.4
3.0
(11.5%)
Net loss ratio
57.8%
57.5%
(0.3pt)
Net expense ratio
27.1%
28.3%
+1.2pt
Combined ratio
84.8%
85.8%
+1.0pt
Underwriting profit
◆ Increased mainly in its
mainstay automobile
insurance.
◆ Increased due to an
increase in system-related
expenses, in addition to
higher marketing costs in
line with new product
launch.
Notes:
Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written
FY2015
FY2016
E. I. loss ratio
63.3%
62.3%
(1.0pt)
E. I. loss ratio +
Net expense ratio
90.4%
90.6%
+0.2pt
Mar. 16
◆ Declined due to a decrease
in provision for reserve for
outstanding losses, in
addition to a persistently
low car accident ratio in
automobile insurance.
Change
Mar. 17
Change from Mar. 16
Number of policies in force
1.79 mn
1.89 mn
Non-consolidated
solvency margin ratio
693.5%
730.8%
+0.09 mn
+5.3%
+37.3pt
Note: The number of policies in force is the total of automobile insurance and medical insurance policies.
21
Sony Financial Holdings Inc. All Rights Reserved
Sony Assuranceʼs Underwriting Performance
by Type of Policy
Net Premiums Written
Direct Premiums Written
(JPY ｍn)
Fire
Marine
Personal accident
Voluntary
automobile
Compulsory
automobile liability
Total
FY2015
FY2016
Fire
Marine
Personal accident
Voluntary
automobile
Compulsory
automobile liability
Total
FY2015
FY2016
Change
Fire
44
24
(43.9%)
Marine
44
(2)
－
8,953
9,044
+1.0%
85,123
89,746
+5.4%
1,384
1,460
+5.5%
95,549
100,274
+4.9%
348
245
(29.6%)
－
－
－
8,679
8,767
+1.0%
Personal accident
85,308
90,001
+5.5%
Voluntary
automobile
－
－
－
94,336
99,014
+5.0%
Compulsory
automobile liability
Total
*Medical insurance is included in personal accident.
Net losses paid
(JPY ｍn)
(JPY ｍn)
Change
FY2015
FY2016
Change
1
6
+298.1%
46
(6)
－
2,472
2,615
+5.8%
44,320
46,263
+4.4%
1,270
1,301
+2.5%
48,111
50,181
+4.3%
Sony Financial Holdings Inc. All Rights Reserved
22
Attachment
Operating Performance:
Sony Assurance (1)
Ordinary Profit and
Adjusted Ordinary Profit
Net Premiums Written and
Number of Policies in Force
Voluntary automobile insurance
Others
(JPY bn)
120
100
Personal accident insurance
Ordinary profit
Number of policies in force
1.70
91.7
1.79
+5.3%
95.5
+4.9%
(ｍn of
policies)
1.89
100.2
9.0
1.4
1.5
80
89.7
8.1
(JPY bn)
80
7.6
7.1
+6.2%
60
40
60
Adjusted ordinary profit
4.2
4.9
+6.8%
4.6
1
20
40
0.5
20
0
FY2014
0
0
FY2014
FY2015
FY2016
The number of policies in force is the total of automobile insurance and medical
insurance policies.
More than 90% of personal accident insurance is medical insurance.
FY2015
FY2016
*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve
(Reference) Provision for catastrophe reserve
(JPY bn)
FY2014
Provision for catastrophe reserve
FY2015
2.8
FY2016
3.0
3.1
*Provision for catastrophe reserve is described as positive amount.
23
Sony Financial Holdings Inc. All Rights Reserved
Operating Performance:
Sony Assurance (2)
Earned/Incurred Loss Ratio +
Net Expense Ratio
Earned/Incurred loss ratio
Net expense ratio
Net loss ratio
（%）
100
(Reference) Combined Ratio
(Net Loss Ratio+ Net Expense Ratio)
Net expense ratio
（%）
91.0
90.4
+0.2pt
90.6
80
100
84.3
84.8
+1.0pt
85.8
80
(1.0pt)
60
64.3
62.3
63.3
40
60
57.6
57.8
57.5
40
+1.2pt
20
(0.3pt)
+1.2pt
26.7
27.1
28.3
FY2014
FY2015
FY2016
0
Notes:
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve for
outstanding losses + Loss adjustment expenses) / Earned premiums
[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]
20
26.7
27.1
28.3
FY2014
FY2015
FY2016
0
Notes:
Net loss ratio = (Net losses paid + Loss adjustment expenses) /
Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written
Sony Financial Holdings Inc. All Rights Reserved
24
Attachment
Operating Performance:
Sony Assurance (3)
Non-consolidated Solvency Margin Ratio
（%）
730.8%
800
629.6%
693.5%
600
+37.3pt
400
200
0
Mar. 15
Mar. 16
Mar. 17
25
Sony Financial Holdings Inc. All Rights Reserved
Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)
<Consolidated>
Consolidated ordinary revenues
Consolidated ordinary profit
37.9
+1.5%
(15.7%)
5.9
(JPY bn)
Consolidated ordinary
revenues
38.5
5.0
FY2016
Change
37.9
38.5
+0.5
+1.5%
Consolidated ordinary profit
5.9
5.0
(0.9)
(15.7%)
Profit attributable to owners
of the parent
3.9
3.3
(0.5)
(15.3%)
FY2015
FY2016
<Non-consolidated>
(JPY bn)
(JPY bn)
FY2015
FY2015
Ordinary revenues
34.8
35.1
+0.2
+0.6%
Gross operating profit
21.6
21.1
(0.5)
(2.6%)
Net interest income
FY2016
<Consolidated>
◆ Ordinary revenues increased due to an increase in interest
income on loans in line with a favorably growing balance of
mortgage loans, partially offset by a decrease in interest and
dividend income on securities.
◆ Ordinary profit decreased due to the lower level of interest
rates, an increase in initial expenses led by a higher execution
of mortgage loans, and lower volumes of foreign currency and
investment trust transactions of customers.
<Non-consolidated>
◆ Both gross operating profit and net operating profit decreased.
・Net interest income increased due to a rise in interest
income on loans.
・Net fees and commissions decreased due to an increase in
initial expenses led by a higher execution of mortgage loans.
・Net other operating income decreased due to lower fees and
commissions from foreign currency transactions of customers.
Change
16.5
17.9
+1.3
+8.4%
Net fees and commissions
0.1
(1.5)
(1.7)
－
Net other operating income
5.0
4.7
(0.2)
(4.5%)
15.9
16.5
+0.5
+3.3%
Net operating profit
5.7
4.6
(1.1)
(20.4%)
Ordinary profit
5.8
4.6
(1.2)
(20.9%)
Net income
3.9
3.1
(0.7)
(18.8%)
General and administrative
expenses
(JPY bn)
Net assets
Net unrealized gains on
other securities, net of taxes
Total assets
Sony Financial Holdings Inc. All Rights Reserved
Change from
Mar. 16
Mar. 16
Mar. 17
77.4
81.3
+3.9
+5.0%
3.3
4.7
+1.4
+43.4%
2,126.5
2,424.2
+297.6
+14.0%
26
Attachment
Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)
(JPY bn)
Mar. 16
<Reasons for changes>
Change from
Mar. 16
Mar. 17
Customer assets
2,034.4
2,227.1
+192.6
+9.5%
Deposits
1,923.5
2,112.9
+189.4
+9.9%
1,587.9
1,764.9
+177.0
+11.1%
335.5
348.0
+12.4
+3.7%
110.9
114.1
+3.1
+2.9%
Loans outstanding
1,344.1
1,539.6
+195.4
+14.5%
Mortgage loans
1,237.1
1,452.4
+215.3
+17.4%
Card loans
10.5
18.0
+7.5
+71.7%
Others
96.5
69.0
*1
(27.4)
+28.5%
1.13 mn
1.24 mn
+0.11 mn
+9.8%
0.23%
0.19%
(0.04pt)
9.89%
9.75%
(0.14pt)
Yen
Foreign currency
Investment trusts
Number of accounts
Non-performing assets
(Based on Financial
Reconstruction Law)
Capital adequacy ratio
(domestic criteria)
ratio *2
*3
◆ Increased in yen ordinary
deposits increased due mainly
to newly accumulated funds
via the increased number of
accounts, as well as the
conversion from foreign
currencies backed by yen
depreciation.
◆ Increased despite the
conversion from foreign
currencies into yen, led by yen
depreciation.
◆ Expanded reflecting higher
demand for refinancing
mortgage loans.
*1 Loans in others include corporate loans of ¥69.0billion
*2 Non-performing loans (loans based on the Financial Reconstruction Act) /Total loan exposure
*3 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P30.
Capital adequacy ratios has been calculated by applying fundamental internal rating based approach (FIRB) from March 31, 2017.
27
Sony Financial Holdings Inc. All Rights Reserved
Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)
<Reference> On Managerial Accounting Basis
(JPY bn)
Gross operating profit
<Reference> Interest Spread
(Managerial Accounting Basis)
FY2015
FY2016
Change
21.6
21.0
(0.5)
(2.6%)
Yield on investment
+1.8
+9.6%
Interest spread
Net interest income*1
①
18.8
20.6
Net fees and commissions*2
②
0.9
(0.9)
(1.9)
ー
1.8
1.4
(0.4)
(23.0%)
Gross operating profit (core profit)
(A)＝①＋②
19.7
19.6
(0.1)
(0.6%)
Operating expenses and other
expenses ③
15.9
16.5
+0.6
+3.9%
3.8
3.1
(0.7)
(19.2%)
Net other operating income*3
Net operating profit (core profit)
＝(A)－③
Yield on financing
（%）
1.5
1.20
1.0
0.93
1.19
+0.01pt
0.94
0.94
■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits and
losses more appropriately.
0.5
0.27
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency swap
transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
0.25
0.0
*3: Net other operating income: After the above adjustments (*1 and *2), mainly consists
of profits and losses for bond and derivative dealing transactions.
FY2015
FY2016
■Core profit
Profits and losses exclude net other operating income, which includes those on bond and
derivative dealing transactions, and stands for Sony Bankʼs basic profits.
Note: Interest spread=(Yield on investment)-(Yield on financing)
Sony Financial Holdings Inc. All Rights Reserved
28
Attachment
Operating Performance:
Sony Bank (Non-consolidated) (1)
Deposits
Yen Deposits
Loans
Foreign currency deposits
+189.4
(JPY bn)
2,000
1,878.2
327.2
Others
Mortgage loans
1,923.5
2,112.9
(JPY bn)
2,000
348.0
1,539.6
335.5
+195.4
1,500
1,500
87.1*
1,344.1
1,187.1
107.0
112.8
1,452.4
1,000
1,000
1,551.0
1,764.9
1,587.9
1,074.3
1,237.1
Mar. 15
Mar. 16
500
500
0
0
Mar. 15
Mar. 16
Mar. 17
Mar. 17
*Corporate loans of ¥69.0 billion, Card loans of ¥18.0 billion
29
Sony Financial Holdings Inc. All Rights Reserved
Operating Performance:
Sony Bank (Non-consolidated) (2)
Non-Consolidated Capital Adequacy Ratio
Balance of Securities by Credit Rating
AAA
BBB
(JPY bn)
800
AA
A
Others
(Domestic Criteria)
（%）
15
730.0
620.9
+10.3
631.2
600
10.65
9.89
(0.14pt)
9.75
10
400
5
200
0
0
Mar. 15
Mar. 16
Mar. 17
Mar. 15
Mar. 16
Mar. 17
Notes:
1. Calculated based on the standard FSA Notification No. 19 (2006), which
establishes standards based on Article 14-2 of the Banking Act of Japan for
determining the capital adequacy of a bank in light of the assets held by the bank.
2. Capital adequacy ratios has been calculated by applying fundamental internal
rating based approach (FIRB) from March 31, 2017.
Sony Financial Holdings Inc. All Rights Reserved
30
Attachment
Forecast of Consolidated Financial Results
for the Fiscal Year Ending March 31, 2018
(FY2017)
31
Sony Financial Holdings Inc. All Rights Reserved
Forecast of Consolidated Financial Results for FY2017
Consolidated ordinary revenues are expected to increase, consolidated ordinary profit and
profit attributable to owners of the parent are expected to be essentially flat.
FY2016 (Actual)
Consolidated ordinary revenues
Life insurance business
Non-life insurance business
Banking business
Consolidated ordinary profit
Life insurance business
Non-life insurance business
Banking business
Profit attributable to owners of the parent
FY2017 (Forecast)
Change
1,381.6
1,430.0
+3.5%
1,243.9
102.3
38.5
1,276.1
108.9
40.6
+2.6%
+6.4%
+5.4%
66.3
67.0
+1.0%
56.8
5.0
5.0
56.4
4.6
6.6
(0.7%)
(8.0%)
+30.6%
41.6
42.0
+0.9%
For FY2017, stable business growth is expected to continue in all the businesses.
Consolidated ordinary revenues are expected to increase, while consolidated ordinary profit and profit attributable to owners of the parent are expected to be
essentially flat.
<Segment information for ordinary revenues and ordinary profit＞
■Life insurance business
Ordinary revenues are expected to increase year on year because we anticipate stable increases in insurance premium revenues.
Ordinary profit is expected to be almost flat because we expect the provision of policy reserves to rise in line with revision in standard yields used for calculating
policy reserves even though we expect an improvement in net gains/losses on derivative transactions to hedge market risks related to minimum guarantee for
variable life insurance as well as an increase in profit from accumulated policies in force.
■Non-life insurance business
Ordinary revenues are expected to increase year on year, in line with growth in net premiums written, primarily for automobile insurance.
Ordinary profit is expected to decrease year on year because we expect the loss ratio to be higher due to higher provision for reserve for outstanding losses
than in FY2016.
■Banking business
Ordinary revenues are expected to increase year on year, due to stable business growth, reflecting a growing balance of mortgage loans and strengthened
foreign currency business
Ordinary profit is expected to increase year on year, due mainly to efforts to appropriately control operating expenses and the increase in ordinary revenues.
*Please see P41 for the detail of Life insurance business forecast.
Sony Financial Holdings Inc. All Rights Reserved
32
Attachment
Changes in Medium-term Dividend Policy
and Dividend Forecast for FY2017
33
Sony Financial Holdings Inc. All Rights Reserved
Changes in Medium-term Dividend Policy and
Dividend Forecast for FY2017
As the expansion of business scale accelerates, we will determine specific
dividend amounts by taking into account not only statutory profit but also other
economic value-based profit indicators
<Medium-term Dividend Policy>
 SFH aims for steady increases in dividends in line with earnings growth over the medium to
long term, while securing sufficient internal reserves to ensure the financial soundness of
Group companies and to invest in growth fields. Management will examine earnings growth
over the medium to long term by taking into account not only statutory profit but also other
economic value-based profit indicators that are more suitable for valuing the growth of the
life insurance business. Furthermore, management will determine specific dividend amounts
for each fiscal year by taking into account a comprehensive range of factors surrounding the
Sony Financial Group.
■ Profit attributable to owners of the parent and dividend results/forecast
FY2013
Profit attributable to owners of the parent
Net income per share
Dividend per share
FY2014
FY2016
FY2015
(Plan)
FY2017
(Forecast)
¥40.5 billion
¥54.4 billion
¥43.3 billion
¥41.6 billion
¥42.0 billion
¥93.11
¥125.10
¥99.67
¥95.69
¥96.65
¥30
¥40
¥55
¥55
¥55
57.5%
57.0%
* For the foreseeable future, we plan to pay a dividend corresponding to more than 50% of net income per share.
(Reference) Dividend payout ratio
32.2%
32.0%
Sony Financial Holdings Inc. All Rights Reserved
55.2%
34
Attachment
Sony Lifeʼs Preliminary MCEV and ESR
as of March 31, 2017
MCEV as of March 31, 2016 is restated by using ultimate forward rates (UFR).
The calculation of MCEV as of March 31, 2016 (after restated) and as of March 31, 2017, in accordance with
the MCEV principles and verified by outside specialists, is scheduled to be announced on May 22, 2017.
A part of the calculations of MCEV adopted simplified method for that as of December 31, 2016.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.
*In this part, figures, ratios and percentages changes have been rounded.
35
Sony Financial Holdings Inc. All Rights Reserved
Sony Lifeʼs MCEV
(JPY bn)
MCEV
Mar. 16
Dec. 16
Mar. 17
Change
from
Mar. 16
Change
from
Dec. 16
1,330.1
1,282.7
1,441.1
+111.0
+158.4
Adjusted net worth
2,074.4
1,831.1
1,657.7
(416.7)
(173.4)
Value of existing business
(744.4)
(548.4)
(216.7)
+527.7
+331.7
(JPY bn)
New business value
New business margin
FY15.4Q
(3M)
FY16.1Q
(3M)
FY16.2Q
(3M)
FY16.3Q
(3M)
FY16.4Q
(3M)
FY16.4Q
(12M)
3.9
(0.2)
5.0
10.2
14.1
29.1
1.2%
(0.0%)
1.6%
4.0%
3.8%
2.2%
Notes:
1. Calculated MCEV as of December 31, 2016 by using updated economic assumptions and lapse and surrender rate from March 31, 2016.
2. New business value for FY16 is calculated accumulating new business value for each month based on economic assumptions at the end of each
month. New business value for FY15.4Q (3M) is calculated accumulating new business value for each quarter based on economic assumptions at the
end of each quarter.
 Reasons for changes in MCEV
・MCEV as of March 31, 2017 increased ¥158.4 billion from December 31, 2016, due mainly to an acquisition of new policies
and a rise in interest rates in Japanese yen.
 New business value
・New business value was steadily increased due to a favorable sales and a rise in interest rates in Japanese yen,
consequently, that for FY16.4Q (3M) was ¥14.1 billion while that for FY16.4Q (12M) was ¥29.1 billion.
*Please refer to the appendix P52 for trend on JGB yields.
Sony Financial Holdings Inc. All Rights Reserved
36
Attachment
Sony Lifeʼs ESR
(JPY bn)
Mar. 16
Dec. 16
Mar. 17
Insurance risk*
989.3
980.2
937.5
Market-related risk
324.2
369.5
405.1
255.2
288.5
308.9
31.4
31.1
28.1
2.0
2.4
1.9
(374.4)
(390.4)
(392.0)
972.4
992.9
980.6
Of which, interest rate risk**
Operational risk
Counter party risk
Variance effect
The risk amount based on
economic value
(* ) Risk amount excluding the variance effect within Life module and Health module.
(**) Risk amount excluding the variance effect within market-related risk.
(JPY bn)
MCEV + Frictional costs
ESR
Mar. 16
Dec. 16
Mar. 17
1,366.5
1,325.5
1,476.6
141%
134%
151%
Notes:
1. The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach,
including insurance risk and market-related risk.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model, which is a similar
but modified model based on the EU Solvency II standard method.
3. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
 The risk amount based on economic value as of March 31, 2017 amounted to ¥980.6 billion, down ¥12.3 billion from December 31,
2016, due mainly to a decrease in insurance risk reflecting a rise in interest rates.
ESR as of March 31, 2017 was 151%, up 17pt from December 31, 2016 due mainly to a decrease in a risk amount and an increase
in MCEV.
 Sony Life will continue to improve ESR levels by accumulating new business value through reinforcing its sales capabilities as well as
ensuring profitability.
Sony Financial Holdings Inc. All Rights Reserved
37
Appendix
Sony Financial Holdings Inc. All Rights Reserved
38
Attachment
Recent Topics 1
AEGON Sony Life Insurance
Launch of sales: December 1, 2009
Common stock: ¥30 billion (including capital reserves of 15 billion)
Equity ownership: Sony Life insurance Co Ltd 50%, AEGON international B.V. 50%
Marketing products: Individual Variable Annuities
Sales Channels: Lifeplanner sales employees and partner Banks (30*) *As of May 15, 2017
SA Reinsurance Ltd
Established︓ October 29, 2009
Common stock: ¥15.9 billion
Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50%
Business︓ Reinsurance business
*AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint ventures established by Sony Life and AEGON Group.
Sony Bankʼs Mortgage Loans through Sony Life
■Sony Life accounts for 21% of the balance of mortgage loans as of March 31, 2017
Sony Life accounts for 20% of the amount of new mortgage loans for FY2016
*Sony Life started handling banking agency business in January 2008.
Sony Assuranceʼs Auto Insurance Sold by Sony Life
■Sony Life accounts for approx. 4% of new automobile policies for FY2016
*Sony Life started handling automobile insurance in May 2001.
Sony Financial Holdings Inc. All Rights Reserved
39
Recent Topics 2
2016-04-01
Sony Lifecare Group opened its first newly built nursing care home “SONARE Soshigaya-Okura” in Tokyo
2016-05-02
Sony Life commenced sale of a new product: “Level Premium Plan Term Life Insurance with Reduced Surrender Value
(Disability/Nursing Care Type)” and “Level Premium Plan Term Life Insurance with No Surrender Value (Disability/Nursing Care Type)”
2016-06-23
SFH changed its President, Representative Director
2016-07-01
Sony Life opened a representative office in Singapore
2016-07-04
SFH and Sony Life relocated their headquarters to Chiyoda-ku, Tokyo
2016-10-01
Sony Life commenced sale of new product: “Non-participating Group Welfare Term Life Insurance”
2016-10-03
Sony Life adopted paperless insurance procedures for its policyholders
2016-10-25
Sony Life acquired an entity stake in ClearView Wealth Limited (Australia) and announced business alliance (entered into cooperation agreement
on Jan. 13, 2017)
2016-10-31
Sony Bank began offering U.S. dollar-denominated active funds on investment trusts and revised the service site
2016-11-07
Sony Bank began offering foreign currency settlement services for teenage customers for Sony Bank WALLET
2016-12-01
Sony Assurance began offering new discount premiums for new customers who contracted automobile insurance via Internet (increased discount rates
from ¥8,000 to ¥10,000)
2017-01-04
Sony Bank began offering new preferential services called “Club S”
2017-01-10
Sony Assurance commenced sale of new product: “ZiPPi” medical insurance to indemnify hospital inpatient expenses and revised “SURE”
medical and cancer insurance
2017-02-01
Sony Assurance and Yahoo! JAPAN announced to begin joint research with a view to developing telematics insurance products and
services for individuals using driving behavior data from car navigation systems
2017-02-20
Sony Lifeʼs Lifeplanner Sales Employees began handling Sumitomo Mitsui Trust Bankʼs life insurance trusts and other services
2017-03-01
Sony Life established a joint venture “IBJ Life Design Support Inc.” with IBJ Inc.
2017-03-01
Sony Bank began issuing cards with a Sony Bank WALLET / “PlayStation” design through an alliance with Sony Interactive Entertainment Inc.
2017-04-02
Sony Life commenced sale of new product: “Living Benefit Decreasing Term Life Insurance (Living Standard Type / Non-Participating Type)”
2017-04-14
Sony Lifecare announced to convert Yuuai Holdings to a subsidiary
2017-04-28
Sony Bank announced changes of its President, Representative Director
2017-05-01
Sony Lifecare Group opened its second newly built nursing care home “SONARE Urawa” in Saitama Prefecture
Sony Financial Holdings Inc. All Rights Reserved
40
Attachment
Analysis on Ordinary Profit for Life Insurance Business
(JPY bn)
56.8
(12.0)
Expenses related to the provision
of policy reserves for minimum
guarantees for variable life
insurance
Increase in profit owing to
growing policy amount in force
Impact of revision in standard
yields used for calculating
policy reserves and others
FY2016
Gains on sale of securities
+6.0
+3.0
(1.4)
56.4
Others
+4.0
（※2）
（※1）
FY2017 (Forecast）
（※1）Including higher expenses in line with new policies and changes in product mix for new policies and others. However, excluding changes in
provision of policy reserves for minimum guarantees for valuable life insurance.
（※2）Including changes in provision of policy reserves for minimum guarantees for valuable life insurance and gains (losses) on hedges of variable life insurance.
Sony Financial Holdings Inc. All Rights Reserved
41
Sony Lifeʼs Product Revisions
 FY16 Product Revisions
(Sales suspension)
May: Single premium whole life insurance (non-notification type), Semi-participating
individual annuities, Semi-participating endowment insurance (short-term
payment), and Non-participating endowment insurance (short-term payment)
Jul.: Single premium semi-participating whole life nursing-care insurance
Oct.: Interest rate-sensitive whole life insurance
(Premium revisions)
Apr.: Single premium whole life insurance (non-notification type)
Jul.: Semi-participating endowment insurance, Non-participating endowment insurance
Oct.: Variable life insurance (whole life type), Limited payment whole life insurance,
Living benefit whole life insurance (living standard type), Living benefit insurance
(whole life type), Whole life nursing-care insurance (reduced surrender value),
Semi-participating whole life nursing-care insurance, Specialty endowment
insurance, Whole-life cancer insurance
 FY17 Premium Revisions
Apr.: Long-term level premium plan term life insurance (with disability benefit),
Cancer hospitalization insurance and other products
Sony Financial Holdings Inc. All Rights Reserved
42
Attachment
Sony Life: Fair Value Information on Securities
(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)
Mar. 15
Carrying
amount
(JPY bn)
Held-to-maturity securities
Mar. 16
Net
unrealized
gains
(losses)
Fair value
Carrying
amount
Mar. 17
Net
unrealized
gains
(losses)
Fair value
Carrying
amount
Fair value
Net
unrealized
gains
(losses)
4,878.7
5,718.2
839.4
5,383.9
7,410.1
2,026.2
6,068.6
7,514.2
-
-
-
251.2
292.5
41.3
277.3
303.3
25.9
1,007.8
1,176.6
168.8
887.9
1,091.6
203.6
896.5
1,069.9
173.3
974.6
1,120.1
145.5
854.3
1,040.3
186.0
852.6
1,013.3
160.7
Japanese stocks
13.4
29.4
16.0
13.6
25.6
12.0
13.6
27.0
13.3
Foreign securities
19.4
26.4
6.9
19.8
25.2
5.4
30.0
29.1
(0.8)
Policy reserve matching bonds
Available-for-sale securities
Japanese government and
corporate bonds
Other securities
Total
1,445.5
0.3
0.6
0.3
0.1
0.3
0.1
0.1
0.3
0.1
5,886.6
6,894.9
1,008.3
6,523.1
8,794.3
2,271.1
7,242.5
8,887.5
1,644.9
Notes:
1. The above table includes monetary trusts other than trading-purpose securities.
2. Derivative financial products such as principal protected 30 year notes with Nikkei 225 index-linked coupons are included in the
“Held-to-maturity-securities” above.
Principal protected 30 year notes with Nikkei 225 index-linked coupons
As of Mar. 31, 2015; Carrying amount: ¥44.2 billion, Fair market value: ¥57.5 billion, Net unrealized gain (losses): ¥13.2 billion
As of Mar. 31, 2016; Carrying amount: None
As of Mar. 31, 2017; Carrying amount: None
Valuation gains (losses) on trading-purpose securities
Mar. 15
Balance sheet
amount
Mar. 16
Net valuation gains
(losses)
recorded in income
Balance sheet
amount
Net valuation gains
(losses)
recorded in income
(JPY bn)
Mar. 17
Net valuation
gains (losses)
Balance sheet
amount
recorded in
income
1.0
2.2
0.0
0.1
Note: The above chart includes trading-purpose securities included in “monetary trusts,” etc
2.0
(0.1)
43
Sony Financial Holdings Inc. All Rights Reserved
Sony Lifeʼs Interest Income and Dividends (Details)
(JPY ｍn)
FY2015
FY2016
Change
0
0
+286.6%
115,655
121,103
+4.7%
522
527
+0.9%
Foreign securities
7,246
8,886
+22.6%
Other securities
1,519
255
(83.2%)
Loans
6,174
6,377
+3.3%
10,261
10,869
+5.9%
71
265
+269.9%
141,450
148,284
+4.8%
Cash and deposits
Japanese government
and corporate bonds
Japanese stocks
Real estate
Others
Total
Sony Financial Holdings Inc. All Rights Reserved
44
Attachment
Sony Lifeʼs Capital Gains/Losses
FY15
(JPY mn)
Capital gains
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on derivatives, net
FY16
1Q
(3M)
2Q
(6M)
3Q
(9M)
4Q
(12M)
1Q
(3M)
2Q
(6M)
3Q
(9M)
6,258
12,246
19,762
27,387
14,501
11,796
25,628
16,114
1,846
3,631
7,119
7,119
－
－
－
－
134
1,308
－
－
－
41
7
49
103
3,631
6,591
12,193
12,204
917
1,301
1,306
4Q
(12M)
－
1,676
－
4,768
8,821
4,577
－
－
Gains on hedges of variable life insurance
－
1,420
－
3,939
4,955
1,042
－
－
Gains on hedges of available-for-sale securities
－
－
－
117
3,021
1,386
－
－
14,670
2,375
Foreign exchange gains, net
780
146
435
－
－
－
24,218
(64)
(64)
(64)
－
－
－
2,375
－
199
13
3,253
4,754
5,868
－
－
2,839
518
758
2,951
3,407
5,688
39,882
32,276
Losses on monetary trusts, net
－
－
－
－
－
－
－
－
Gains (losses) on sale of foreign bonds*
Other capital gains
Capital losses
Losses on trading securities, net
75
419
143
－
－
－
－
－
Losses on sale of securities
－
－
－
－
－
－
－
－
Devaluation losses on securities
－
－
－
－
－
－
－
－
2,097
－
515
－
－
－
34,275
30,050
1,970
－
699
－
－
－
14,292
15,666
－
－
－
－
－
－
2,265
2,460
－
－
－
2,798
3,139
5,023
－
－
－
－
－
64
(1,681)
(2,375)
－
－
Losses on derivatives, net
Losses on hedges of variable life insurance
Losses on hedges of available-for-sale securities
Foreign exchange losses, net
Losses on sale of foreign bonds**
Other capital losses
Net capital gains (losses)
* (losses) represents negative figures.
665
99
99
153
267
665
5,606
2,226
3,419
11,728
19,003
24,435
11,094
6,108
(14,253)
(16,162)
** (losses) represents positive figures.
In FY16,
recorded ¥3,683
million as a total
of gains on sale
of securities and
foreign exchange
gains on sale of
foreign bonds.
Notes on Sony Lifeʼs Capital Gains/Losses are disclosed in page 46.
Sony Financial Holdings Inc. All Rights Reserved
45
Sony Lifeʼs Capital Gains/Losses (continued)
(Note 1)
・ Foreign exchange losses, net for FY16.1Q (3M) include foreign exchange losses of ¥4,280 million relating to U.S. dollar-denominated insurance.
Moreover, other capital gains include the reversal of policy reserves for U.S. dollar-denominated insurance of ¥4,754 million relating to foreign
exchange fluctuation.
・Foreign exchange losses, net for FY16.2Q (6M) include foreign exchange losses of ¥6,720 million relating to U.S. dollar-denominated insurance.
Gains on derivatives, net include foreign exchange gains relating to U.S. dollar-denominated insurance of ¥ 1,337 million.
Moreover, other capital gains include the reversal of policy reserves for U.S. dollar-denominated insurance of ¥5,868 million relating to foreign
exchange fluctuation.
・Foreign exchange gains, net for FY16.3Q (9M) include foreign exchange gains of ¥21,805 million relating to U.S. dollar-denominated insurance.
Losses on derivatives, net include foreign exchange losses relating to U.S. dollar-denominated insurance of ¥ 17,445 million.
Moreover, other capital losses include the provision of policy reserves for U.S. dollar-denominated insurance of ¥4,941 million relating to foreign
exchange fluctuation.
・Foreign exchange gains, net for FY16.4Q (12M) include foreign exchange gains of ¥12,389 million relating to U.S. dollar-denominated insurance.
Losses on derivatives, net include foreign exchange losses relating to U.S. dollar-denominated insurance of ¥ 12,010 million.
Moreover, other capital losses include the provision of policy reserves for U.S. dollar-denominated insurance of ¥1,560 million relating to foreign
exchange fluctuation.
（Note2）
・ Foreign exchange gains, net for FY15.1Q (3M) include foreign exchange gains of ¥673 million relating to U.S. dollar-denominated insurance.
Moreover, other capital losses include the provision of policy reserves for U.S. dollar-denominated insurance of ¥656 million relating to foreign
exchange fluctuation.
・ Foreign exchange gains, net for FY15.2Q (6M) include foreign exchange gains of ¥164 million relating to U.S. dollar-denominated insurance.
Moreover, other capital gains include the reversal of policy reserves for U.S. dollar-denominated insurance of ¥199 million relating to foreign
exchange fluctuation.
・ Foreign exchange gains, net for FY15.3Q (9M) include foreign exchange gains of ¥19 million relating to U.S. dollar-denominated insurance.
Moreover, other capital gains include the reversal of policy reserves for U.S. dollar-denominated insurance of ¥13 million relating to foreign
exchange fluctuation.
・ Foreign exchange losses, net for FY15.4Q (12M) include foreign exchange losses of ¥3,094 million relating to U.S. dollar-denominated insurance.
Moreover, other capital gains include the reversal of policy reserves for U.S. dollar-denominated insurance of ¥3,253 million relating to foreign
exchange fluctuation.
（Note3）
・ The figures of income (losses) from monetary trust, net, income (losses) from trading securities, net, gains (losses) on derivatives and foreign
exchange gains (losses), net were recorded after offsetting gains and losses of each item.
Sony Financial Holdings Inc. All Rights Reserved
46
Attachment
Sony Lifeʼs Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount
(JPY bn)
1,491.6
1,500
1,250
1,437.4
1,457.7
1,324.2 1,290.7
1,260.0
1,152.5
1,135.8
1,098.9
991.5
1,000
1,189.0
1,050.7
750
500
250
0
FY14.1Q FY14.2Q FY14.3Q FY14.4Q FY15.1Q FY15.2Q FY15.3Q FY15.4Q FY16.1Q FY16.2Q FY16.3Q FY16.4Q
47
Sony Financial Holdings Inc. All Rights Reserved
Sony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies
Annualized premiums from new policies
Of which, third-sector
(JPY bn)
25
22.3
21.8
20
18.9
20.6
19.1
18.5
17.2
23.9
22.7
20.5
18.2
15.3
15
10
5
5.1
3.7
2.8
3.5
3.9
3.4
4.6
3.6
4.1
3.9
3.1
4.4
0
FY14.1Q FY14.2Q FY14.3Q FY14.4Q FY15.1Q FY15.2Q FY15.3Q FY15.4Q FY16.1Q FY16.2Q FY16.3Q FY16.4Q
Sony Financial Holdings Inc. All Rights Reserved
48
Attachment
Operating Performance : AEGON Sony Life Insurance
*AEGON Sony Life Insurance sells individual variable annuities.
Number and Amount of Policies in Force
Number and Amount of New Policies
New policy amount
163.2
[26.8]
Number of policies in force [ ]
(JPY bn)
(Thousands
of policies)
(JPY bn)
200
Policy amount in force
Number of new polices [ ]
600
444.2
[73.4]
500
30
150
(Thousands
of policies)
501.7
[85.9]
80
400
71.5
100
[11.8]
70.8
[14.2]
20
300
200
60
390.4
40
[63.5]
10
50
20
100
0
FY2014
FY2015
0
0
0
Mar. 15
FY2016
100
Mar. 16
Mar. 17
Net income (losses) for AEGON Sony Life Insurance and SA Reinsurance
(JPY bn)
AEGON Sony Life Insurance
FY2015
FY2016
Change
(3.2)
(4.4)
(1.2)
1.8
(2.6)
(4.4)
SA Reinsurance
AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance and
SA Reinsurance are recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.
Sony Financial Holdings Inc. All Rights Reserved
49
Method of Measuring Risk Amount
Based on Economic Value (1)

Market-related Risk*1
Sony Life
Interest rate risk
Fluctuations in net asset
value based on economic
value in response to the
shocks in the right
columns.
The same applies below.
Percentage increases or decreases differ for each
currency and term.
As for measuring interest rate risk in Japanese yen,
introduced principal component analysis, where yield
curve changes are disaggregated into three
components, parallel shift, twist and butterfly, and the
yield curve is shocked by each component.
(Reference) EU Solvency II Implementing
Measures (Delegated Regulation)
Different percentage changes in interest rates are
set for each term, from one year to 20 years.
For terms longer than 20 years and through 90
years, percentage changes are set using linear
interpolation, with negative 29% as the percentage
change for 20 years and negative 20% as the
percentage change for 90 years.
(Example)
For Yen 30-year, 33% decrease (parallel shift),
28% decrease (twist), 8% decrease (butterfly)
Equity risk
Listed equities 45%, Other securities 70%
Global 39%, Others 49%*2
Real estate risk
Actual real estate 25%
Same as on the left
Credit risk = (market value) x (risk coefficient for each
credit rating) x duration
Credit risk = (market value) x (risk coefficient for
each credit rating and duration)
Credit risk
Note that durations have caps and floors, depending
on credit ratings.
(Example)
Rating A: Risk coefficient (1.4%), cap (23), floor (1)
Currency risk
35% downside fluctuation
(Example)
Rating A: Duration (Dur): 5-10 years
Risk coefficient=7.0% + 0.7% x (Dur – 5 )
25% downside fluctuation
Notes
1. Principal items as of March 31, 2017.
2. Symmetric adjustment (an adjustment of±10% of the average value of the stock price index during a defined period in the past) is applied.
Sony Financial Holdings Inc. All Rights Reserved
50
Attachment
Method of Measuring Risk Amount
Based on Economic Value (2)

Insurance Risk*1
(Reference) EU Solvency II Implementing Measures
(Delegated Regulation)
Sony Life
Mortality risk
Mortality rate increases by 15% for each year elapsed
Same as on the left
Longevity risk
Mortality rate decreases by 20% for each year elapsed
Same as on the left
Lapse risk
The largest amount of these; *2
The largest amount of these;
•Lapse
•
rate increases by 50% for each year elapsed
•
Lapse rate decreases by 50% for each year elapsed
•
30% of policies on which surrender value is in
excess of best estimate liability are immediately
surrendered
Increases by 50% in the assumed rates of
lapsation for Life module, 50% for Health module
•Decreases
by 50% in the assumed rates of
lapsation for Life module, 50% for Health module
•
40% of policies (70% for group annuities, etc.) on
which surrender value is in excess of best
estimate liability are immediately surrendered
Expense risk
Operating expenses increase by 10% for each year elapsed
Rate of inflation rises by 1%
Same as on the left
Disability risk
Rate of occurrence increases by 35% in the first fiscal year,
rising by 25% for each year thereafter
Rate of occurrence increases by 35% in the first fiscal
year, rising by 25% for each year thereafter. Recovery
rate decreases by 20%.
Notes
1. Principal items as of March 31, 2017.
2. At Sony Life, lapse risk is calculated by computing and adding together the largest amount of three options for each insurance policy
Sony Financial Holdings Inc. All Rights Reserved
51
Trend on JGB Yields (Par rate)
As of the end of each month
Sony Financial Holdings Inc. All Rights Reserved
52
Attachment
Trend on Risk-free Rate (Japanese yen/ Par rate)
Convergence
period:
20 year
Last liquid point: 40 year
*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Sony Financial Holdings Inc. All Rights Reserved
53
Contact:
Communications & Investor Relations
Department
Sony Financial Holdings Inc.
TEL︓ +81-3-5290-6500
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54